Boats are expensive to repair, easy to damage, and create significant liability risk. While some homeowners policies cover small boats, most boat owners need a dedicated marine insurance policy for adequate protection.
Boat Insurance Coverage Types
- Physical damage (hull coverage): Covers damage to your boat from collisions, sinking, fire, theft, and weather
- Liability: Covers bodily injury and property damage you cause to others on the water
- Medical payments: Covers medical bills for you and passengers injured on your boat
- Uninsured boater: Covers you if hit by an uninsured boater
- Towing and assistance: On-water towing and emergency services
- Personal property: Fishing equipment, electronics, personal belongings on the boat
- Fuel spill liability: Covers cleanup costs for accidental fuel spills
Does Homeowners Insurance Cover Boats?
Most homeowners policies provide very limited boat coverage:
- Small boats (under 25 HP or under $1,500 value) may be covered for theft and some damage
- Liability coverage is typically excluded or very limited
- Larger boats, sailboats, and personal watercraft are usually excluded entirely
Don't assume your homeowners policy covers your boat. Check your policy and get a dedicated marine policy if needed.
What Boat Insurance Costs
Annual premiums typically run 1–2% of the boat's value:
- Small powerboat ($15,000): $150–$300/year
- Mid-size boat ($50,000): $500–$1,000/year
- Large boat ($150,000): $1,500–$3,000/year
- Personal watercraft (jet ski): $100–$300/year
Who Needs Dedicated Boat Insurance
You need a dedicated boat insurance policy if:
- Your boat is worth more than $1,500
- Your boat has more than 25 HP
- You have a sailboat, yacht, or personal watercraft
- You use your boat on open water or away from your property
- Your marina requires proof of insurance
Tips for Getting the Best Rate
- Complete a boating safety course — earns discounts at most insurers
- Bundle with your auto or homeowners insurance
- Store your boat in a secured marina or garage
- Install anti-theft devices
- Choose agreed value coverage (pays full insured value if totaled) over actual cash value
- Ask about lay-up discounts for seasonal storage
