Watercraft Insurance: Definition, Coverage, and Considerations

Watercraft insurance comprises three main types: boat insurance, yacht insurance, and personal watercraft insurance. It provides protection against damages to vessels powered by motors with a horsepower of at least 25 mph. Examples of covered costs include physical loss or damage to the boat, theft, and towing.

Depending on the policy, watercraft insurance may include liability coverage for bodily injury to individuals other than the boat’s owner and family, as well as medical payments for injuries to the owner and their family. Additional liability coverage may be required as an add-on. The type of insurance purchased is determined by the size of the vessel.

Boat insurance covers vessels under 197 feet long, including small craft like canoes, rowboats, and powerboats with less than 25 mph horsepower. It typically includes theft, physical damage due to collisions, property damage caused by vandalism or natural disasters, and medical payments for injured passengers. Additional coverage options may include lay-up periods, navigational territories, property damage liability, and on-water towing assistance.

Yacht insurance offers broader coverage for larger vessels, usually costing more due to increased risks and higher values. Coverage may include hull insurance for direct damage, protection and indemnity (P&I) insurance for liability, and specialized coverages for maritime law exposures. Deductibles are often determined as a percentage of the insured value.

Personal watercraft insurance is designed for recreational vehicles such as Jet Skis, Sea-Doos, and Yamaha Wave Runners. It covers risks such as bodily injury, liability for legal costs in accidents, property damage, theft, and towing. Deductibles and liability limits vary by policy, with options for additional coverage for trailers and accessories.

While only a few states mandate watercraft insurance, many boat owners choose to purchase it voluntarily. Lenders and marinas may require insurance for boat loans and rental agreements. Even if not legally required, obtaining watercraft insurance is advisable to protect against costly risks and legal fees in the event of an accident.

While some states require watercraft insurance, it is not mandatory in many areas. However, lenders and marinas may require insurance for boat loans and rental agreements.

Watercraft insurance typically covers physical loss or damage to the vessel, theft, towing expenses, liability for bodily injury to others, and medical payments for injuries to the owner and their family.

Yes, watercraft insurance encompasses boat insurance, yacht insurance, and personal watercraft insurance, each tailored to different types and sizes of vessels.

Yes, insurance companies often offer customizable options for watercraft insurance policies, allowing policyholders to tailor coverage to their specific needs and preferences.

To select the right watercraft insurance policy, consider factors such as the size and type of your vessel, your usage patterns, desired coverage limits, deductible preferences, and budget constraints. It’s advisable to compare quotes from multiple insurers to find the best coverage at the most competitive rates.