Boat Insurance

It depends on your location. See if boat insurance is required in your state in the list below (municipalities may have different requirements):

• Alaska: No 
• Arizona: No 
• California: No 
• Montana: No 
• Nevada: No 
• Utah: Yes, for all boats with 50-plus horsepower engines. For these kinds of vessels, Utah requires boat insurance coverage for bodily injury (at least $25,000), death ($50,000), and property damage ($15,000)—or a combined $65,000 minimum coverage per accident. Please keep proof of insurance on your boat whenever it’s in use.
• Wyoming: No    

While your state might not require boat insurance, some local municipalities do. Many marinas also require proof of insurance to dock a boat. If you have a boat loan, your lender may require it.

But even if it’s not required, boat insurance is a good idea because it helps you glide across the water without worry. A watercraft can be a significant investment. If you’re uninsured and damage your boat—or total it—you’ll need to repair or replace it yourself. And if you get into a boating accident and someone gets injured, you might need to pay their medical bills. But with boat insurance, your insurance policy may help you offset some of the cost.

If something happens, watercraft insurance coverage may protect your boat, your passengers, and, if you collide with another watercraft, people you don’t even know.

Boat insurance may cover:

• Bodily injury to guests or visitors
• Physical damage to your boat from common risks, such as weather (like hurricanes, hail, or wave damage), collisions (with other boats, docks, and other objects), falling trees, fire, and vandalism
• Damage to your boat caused by an uninsured boater (underinsured or uninsured motorist coverage is required) 
• Damage to someone else’s property, such as boats, docks, or waterfront property polluted by a fuel spill
• Sinking 
• Boat theft
• Theft or damage to a boat trailer or accessories, such as motors and geo-location instruments
• Theft, damage, or loss of personal belongings, such as fishing gear, electronics, clothing, mattresses, and food
• Mechanical breakdowns, if they’re not due to wear and tear (covered by some policies)
• Towing following an accident

Most homeowners insurance covers only small, nonmotorized boats like kayaks, canoes, rowboats, and small powerboats with less than 25 miles per hour of horsepower. Homeowner policies offer limited coverage (typically between $1,000 to $2,000) and most will not cover your boat while in the water. Policies typically only cover damages incurred while storing the boat on your property.

You and your boat are unique, so an agent can help you determine how much boat coverage is right for you. 

Your state, local municipality, or lender may require you to purchase at least a minimum amount of coverage.

Generally, you should buy coverage with limits that equal your boat’s current market value. That way, if the worst happens, like totaling your boat, you can file a claim to replace it at no additional cost. For newer boats, the current market value equates to the price of purchase. If your boat is older, peruse listing prices of similar boats online to estimate its value. If you have a faster or more powerful boat, you might want a boat policy with a higher limit.  

The cost of boat insurance ranges widely from $100 to $1,500 per year, although the average is between $200 and $500 a year. The good news is you may be eligible for various insurance discounts.

Your own boat insurance cost depends on the carrier and a few factors, including:

• Type of boat: If you have a high-performance boat, which can cause more damage to other boats, you may pay more for liability coverage. Older boats cost less to replace, so their owners can save money on insurance.
• Boat length: Yachts—which are 27 feet in length or longer—tend to travel further and face more risks than boats that stay closer to shore. So yacht owners need yacht insurance, which provides specialized coverage and higher insurance policy limits than regular boat insurance. 
• Number of engines and horsepower: Boats with more horsepower are riskier, so insurance costs tend to be higher.
• How you use your boat: Do you simply glide along or go fishing? Or do you use a speedboat to tow water-skiers? How you use your boat can determine its level of risk and the cost of your insurance premiums.
• Where you use your boat: If you boat on waters prone to hurricanes or other weather hazards, you may pay more for coverage. For yachts and other larger boats, your insurance will specify navigational areas where your boat has coverage. The larger the area, typically the more your coverage will cost.
• How often you use your boat: If you’re on the lake every weekend, you’ll likely pay more than someone who uses their boat just a few times a year.
• Where you store your boat: If you store your boat in a dry area during winter, you might qualify for a “lay-up” discount.
• Your boating and driving records: You may save on insurance coverage if you have clean driving and boating records.
• Boat safety certification: Multiple carriers offer a discount to boat owners who have gotten a boat safety certification.
• On-board safety gear: If your boat has extra safety features, you might save money on insurance.