Whether you’re cruising the lake in a pontoon, deep-sea fishing in a center console, or paddling in a kayak, being on the water offers unmatched freedom. But along with the thrills of boat ownership comes an important question: Is your boat covered?
Many boaters assume their homeowners or auto insurance will protect their watercraft—only to discover too late that coverage is limited or excluded. In this article, we’ll explain why boat insurance matters, what it typically covers, and which types of watercraft need their own policy.
Why Boat Insurance Matters
Boat insurance protects you from financial losses and liability due to accidents, theft, storm damage, and more. Even if your state doesn’t require boat insurance by law, it’s often required by lenders, marinas, and storage facilities, and it’s essential for peace of mind.
Here’s what a typical boat insurance policy may cover:
- Physical damage to the boat (hull, motor, equipment)
- Liability if you cause injury or property damage
- Medical payments for injuries to you or your passengers
- Uninsured/underinsured boater protection
- Fuel spill liability and wreck removal
Note: Homeowners policies may offer limited coverage for small, non-motorized boats (usually under 25 horsepower or $1,000 in value), but they rarely cover full replacement, liability, or accidents that occur off your property.
Types of Watercraft That Should Have Dedicated Insurance
Not all boats are treated equally. Here’s a breakdown of which types typically require their own policy—and why.
1. Motorboats
Includes:
- Bowriders
- Deck boats
- Jet boats
- Bass boats
Why you need coverage: These are fast, motorized vessels with high liability risk, often used on busy lakes and rivers.
2. Personal Watercraft (PWCs)
Includes:
- Jet Skis
- Sea-Doos
- Waverunners
Why you need coverage: PWCs are compact but powerful and involved in many boating accidents. Specialized PWC insurance covers damage, theft, and liability.
Tip: Most homeowners policies exclude personal watercraft entirely.
3. Sailboats
Includes:
- Day sailers
- Cruising sailboats
- Racing sailboats
Why you need coverage: Sailboats, especially larger ones, can cause expensive property damage or injury. Insurance protects your boat both in and out of the water.
Policies often vary based on whether the sailboat has an auxiliary motor and its length (e.g., over 26 feet may require yacht insurance).
4. Fishing Boats
Includes:
- Center consoles
- Aluminum boats
- Flat-bottom skiffs
Why you need coverage: From rough waters to stolen gear, fishing boats face high exposure. Insurance can cover not just the boat, but trailers and equipment like depth finders and tackle.
5. Pontoon Boats
Why you need coverage: Though generally slow and stable, pontoons are often used for family outings. They still pose liability risks and are expensive to repair or replace.
6. Yachts
Why you need specialized insurance: Yachts often require custom coverage due to their size, value, and international travel. Yacht policies may include crew liability, navigation limits, and mechanical breakdown coverage.
7. Houseboats
Why you need coverage: These are often used as permanent or seasonal residences. They need policies that blend marine and homeowner-style coverage.
8. High-Performance Boats
Includes:
- Speedboats
- Racing boats
Why you need specialized coverage: High speeds = high risk. Standard boat insurance may exclude these vessels, requiring a separate high-performance policy.
What About Non-Motorized Craft?
May Be Covered (But Check Your Policy)
Includes:
- Canoes
- Kayaks
- Paddleboards
- Rowboats
Coverage status: Some homeowners policies offer limited protection (often up to $1,000) for non-motorized boats—but only for theft or damage on your property.
For full protection:
- Add an endorsement to your homeowners policy
- Purchase a separate boat policy for higher-value equipment or if you transport/use it off-site frequently
Key Questions to Ask When Shopping for Boat Insurance
- Is my trailer covered?
- Are personal items and fishing gear covered?
- Is towing and assistance on the water included?
- What are the navigation limits? (e.g., coastal, inland waters)
- Is there seasonal or lay-up coverage?
Final Thoughts: If It Floats, It Might Need Coverage
If you own a boat or any type of watercraft with significant value or risk exposure, you need more than just hope or a basic home policy—you need specialized boat insurance.
Pro Tip: The type, size, horsepower, and usage of your vessel will determine what kind of coverage you need. Always speak with a licensed insurance agent to ensure your policy matches your lifestyle and watercraft.
At Capital Insurance Service, we are committed to offering our clients a wide range of comprehensive and affordable insurance policies. We go above and beyond to ensure that we meet your unique needs with tailored solutions. To find out more about how we can assist you, please reach out to our agency at 775-301-9099 or CLICK HERE to request a free, no-obligation quote.
Disclaimer: The content provided in this blog is for informational purposes only and should not be considered professional advice. For personalized guidance, it is important to consult with a qualified insurance agent or professional. They can offer expert advice tailored to your individual situation and help you make well-informed decisions about your insurance coverage.
