Personal Insurance
Boat and Yacht Insurance

Why do I need insurance for my Boat?

Whether your love of the water centers around cruising, sailing, offshore fishing, drifting or the serenity of a private lake, there's no other policy that protects you like a boat owner policy does—both in and out of the water. Boat owner policies typically include some of the broadest ranges of property and liability coverage available in a single policy, addressing the special situations encountered on water.

Boat owners often assume that their homeowners insurance provides complete protection for their vessel. Unfortunately, many learn the hard way -- after a loss occurs -- that their homeowners policy offers very limited property and liability protection. In fact, only $1,500 of coverage is provided in the standard homeowners policy for physical damage -- almost always insufficient for most boat owners. Boat policies also provide specialized coverages that you just can't get with a standard homeowners policy, allowing for better overall coverage and protecting you legally and financially should a loss occur.

What does boat and yacht insurance cover?

While coverages differ between carriers and boats versus yachts, most combine physical damage and liability coverage into a single policy, called a "boat owners policy." Generally, boat insurance policies are designed to cover boats up to 25' 11" in overall length. If the size of the vessel is 26 feet or greater, it's usually considered a yacht, even though policies for both class sizes are similar in coverages.

These coverages protect you and your craft:

• Hull and Equipment Coverage
  This important coverage pays to repair your craft if it's accidentally damaged or destroyed by a covered peril such as wind, fire, lightening, collision with other boats and underwater objects, theft, vandalism, explosion, sinking and capsizing. Hull coverage is very broad, with a few exclusions such as wear and tear, dishonest, illegal, intentional or fraudulent acts. Coverage includes your fixtures, furnishings, motors and all equipment vital to its operation. It may also include coverage during transport of your boat, transferring your collision coverage form the waterways to the highways.
   
• Liability Protection and Indemnity Coverage
  Liability and indemnity coverage protects you legally and financially if a claim or lawsuit should ever surface. Coverage is provided in the event you are sued as a result of hitting another boat or sea-faring vessel or if someone is hurt onboard your craft because of your negligence. This may include swimmers, water-skiers, other boaters and their passengers (or yours), and most anyone else sharing the waters with you. It also covers damage to other vessels, piers, wharves and other property you don’t own. This coverage is written only in conjunction with hull coverage and not subject to a deductible. It's usually offered in increments of $100,000 up to $1 million or more.
   
• Medical Payments Coverage
  This special "goodwill" coverage pays for less serious injuries that occur in your boat, or while boarding or leaving your boat regardless of fault. If you frequently have a lot of passengers, you should consider carrying a higher coverage limit.
   
• Uninsured Boaters Coverage
  This coverage is for your protection. If you are hurt by a boater who is uninsured, you have your own insurance to pay for bodily injury damages you are legally entitled to recover.
   
• Towing and Labor Costs
  This coverage is similar to the towing coverage provided on your personal automobile policy. If your craft is damaged or marooned and you need a tow or a shove, coverage is provided up to the limits on your policy.
   
• Specialized Equipment
  This can include boat accessories, including your detachable marine equipment and items you wear or carry on board—while they are stored away from your boat. It may also include fishing equipment, gear, and electronics.
   
• Agreed Value versus Actual Cash Value
  Agreed Value pays the cost to restore or replace your vessel or damaged property without the deduction for depreciation. Actual cash value is replacement cost at the time of loss, less depreciation.