What is Boat Insurance?

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What is Boat Insurance?

As a boat owner, getting insurance coverage can give you the peace of mind you need. This is because boat insurance helps protect your personal boat and water- vehicles from unexpected circumstances. So if you travel across lakes, rivers, or oceans, with boat insurance you can get the peace of mind you need anytime and any day.

What is Boat Insurance?

You can get comprehensive collision coverage to pay for damages to your boat. Plus you can enjoy other benefits and protection such as damages and injuries caused by you to other people, their boat, or buoy. Some of the types of boats covered by this policy are Powerboats, Fishing boats, Sailboats, Pontoon boats, personal watercraft, etc.

Note; when it comes to getting insurance for your buoy, it is advisable to separate your watercraft insurance from your homeowner’s policy. This is because a lot of homeowner’s policies often include coverage for smaller boats as well as motors and they have a horsepower range from 25-100.

Why Do I Need Boat Insurance?

It is not a mandatory service but getting boat insurance is very important for the safety it offers. Being on the water often is great but there are various potential risks that could happen out there.

As an individual, acquiring boat insurance offers financial safety that easily protects you when injuries occur to objects or people and the damages you cause as well. In addition, it also covers your boating vehicle and trailer if they happen to be stolen or highly damaged.

What Are The Types Of Boat Insurance Policies?

There are various types of boat insurance that also offer various insurance policies. Some of the various types of policies include:

  • Boat clubs: This policy covers all the members of a club that operates a boat
  • Professional: This is an insurance policy that covers items for travel to a tournament, more equipment, and so on. It is a policy that can be customized and adheres to people like Charters, Fishing Guides, ProAngler, etc.
  • Boat and PWC Rental: This is a policy that is not often required but it comes in useful. This insurance covers any damage that has been done to a vessel as well as the passengers and operators.
  • Personal Water vehicles like Yachts, Dinghy, or sailboats.

What does it cover?

Meanwhile, Boat insurance can cover both physical damage to your boat and then any accidents or bodily injury you cause to someone else while boating. Here are some examples of common yacht insurance coverage options:


Pays for any damages or injuries caused by you while boating, subject to the limits of your policy.

Physical damage coverage

this covers comprehensive and collision coverage, in addition to coverage for damages caused by occurrences beyond your control, such as weather, theft, or fire. Damages caused in a collision with another watercraft or object are also covered, regardless of fault, including if your boat capsizes.

Uninsured/underinsured boater

Covers for your injuries if you are injured by a boater who does not have coverage nor has only a limited amount of insurance.

The hull, fittings, furnishings, and additional parts, such as engines, anchors, fuel tanks, batteries, and onboard safety equipment, are normally covered if physical damage coverage is included with your coverage.

What are the Boat Insurance Factors?

The insurance factors are various features that will decide if you are fully ready and eligible to purchase a policy or not. You simply have to ensure that the factors listed can be provided to the insurance company. Those factors include:

  • The boat length
  • Age of boat
  • Condition of whether it meets the US Coast Guard Standards in effect when it was built
  • The type of boat including whether it is a saltwater fishing boat, cruiser, utility, bassboat, performance boat, Inboard, Outboard, etc.
  • Also, the speed or Horsepower of the boat
  • Houseboats without any motor
  • If the boat is used as a primary residence

How Much Is Boat Insurance?

The price that you pay for your boat insurance depends on various factors that relate to the subject. These factors include:


Getting boat insurance tends to be more expensive if you happen to boat in a state that is more. In all regards, you may actually pay less for this insurance if you watercraft in states where the boating activity doesn’t happen continuously in a year.

Boat Type

Another factor that plays into how much you pay for boat insurance is your boat type. That is, the year the boat was made, the make, the model, and so on will affect how much your boat insurance will cost.

Previous Claims

As a boat insured, if you have a long history of boat insurance claims, it is highly likely that you will pay more to insure your boat and the liability protection.

Your Boating History

If you happen to be a more experienced boater with years of experience under your belt, it is a win. You are likely to pay less for boat insurance since you have been on the waters far longer than others and you could have fewer accidents. Whereas, inexperienced boaters could be paying more for boat insurance.

In general, this insurance policy is quite affordable. There are even reports that show that a lot of boaters actually pay their policies in full. It all just comes down to the insurance company you select and what they offer.