If you are new to boating or comparing policies, you might be wondering exactly what boat insurance covers. This is one of the first questions almost every boater asks, and the truth is that not all boat insurance policies are built the same. Some cover a lot. Some cover the basics. And some leave out things you would expect to be included.
Here is a clear, straightforward breakdown of what boat insurance typically covers so you can understand your protection and avoid surprises when something goes wrong.
Hull and Equipment Coverage
This is the core part of most boat insurance policies. It protects the physical boat itself. Hull coverage usually includes damage to:
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The fiberglass or hull structure
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Engines
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Electronics
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Controls
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T-tops or hardtops
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Towers
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Fuel tanks
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Anchors and windlasses
It also covers damage from things like collisions, storms, fires, sinking, theft, and vandalism. If you want help determining the right insured value for your boat, I can review it and point you in the right direction.
Liability Coverage
Liability protects you if you accidentally damage someone else’s property or injure another person while operating your boat. This includes things like:
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Damage to docks
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Damage to another boat
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Injuries to passengers
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Injuries to people on another vessel
Many marinas and lenders require liability coverage, but the minimums are often too low. If you are unsure how much liability protection you need, I can walk you through the common limits and what fits your boating style.
Medical Payments
Medical payments coverage helps pay medical expenses for you or your passengers if someone is hurt while on your boat. It does not matter who was at fault, think slip and fall injuries that can occur on wet surfaces. This coverage is usually inexpensive and worth having because injuries on the water can get costly fast.
Uninsured or Underinsured Boater
This protects you if another boater hits you and they do not have enough insurance to cover the damage or injuries. Unfortunately, many boaters on the water either have no insurance or very low limits, so this coverage is important.
Towing and Assistance
On-water towing can get expensive. Even a short tow back to the marina can cost a few hundred dollars. Most policies offer towing reimbursement, and some carriers include special towing services.
Some boaters combine a towing membership with the towing built into their insurance for extra peace of mind.
Trailer Coverage
If you tow your boat, most policies will include coverage for the trailer itself. This usually protects the trailer from theft or physical damage. The liability for the trailer on the road normally comes from your auto policy, but the value of the trailer is covered under your boat policy.
Personal Effects
Some policies include coverage for personal items on the boat such as:
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Fishing gear
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Life jackets
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Water toys
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Clothing
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Safety equipment
The limits vary by carrier. If you keep a lot of gear on your boat, I can help you choose a policy with the right personal effects limit.
Fuel Spill Liability
If your boat sinks or has a major engine issue that causes a spill, you are responsible for cleanup costs. This coverage helps protect you from those expenses. Not every boater realizes how important this is until they see how expensive cleanup can get. According the Oil Pollution Act of 1990, you could be liable for well over $1 million dollars in liability for fuel spills. Some policies include this coverage.
What Boat Insurance Usually Does Not Cover
Knowing what is covered is important, but knowing what isn’t covered is just as, or sometimes, more important. Every policy has exclusions and every policy is unique. Here are common things that many boat insurance does not cover:
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Normal wear and tear
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Lack of maintenance
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Damage from rodents
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Manufacturer defects
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Corrosion
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Mechanical breakdown (unless your policy specifically includes it)
This isn’t an exhaustive list of exclusions. For a complete list, make sure you check your own policy or give your team a call.
The Bottom Line
Understanding what boat insurance covers helps you choose the right protection and avoid gaps. Hull damage, liability, medical payments, uninsured boater, towing, trailer coverage, and personal effects are core protections that every boater should understand.
If you want help reviewing your current coverage or getting a quote that fits your boat and how you use it, reach out anytime. I can usually walk you through your options in just a few minutes.
As always, remember to wear your life jackets and enjoy the water!
Written by Eric Fisher
Boat Insurance Guy and Agency President of On The Water Marine Insurance.
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