Watercraft Insurance:

Owning a boat or personal watercraft offers freedom, recreation, and the chance to enjoy time on the water—whether you’re cruising the lake, fishing, or zipping across the surface on a jet ski. But owning a watercraft also comes with risks: accidents, storms, theft, fuel mishaps, and liability exposures can create expensive and unexpected problems.

Watercraft Insurance protects your boat, your equipment, and your financial wellbeing every time you head out—or leave your vessel in storage.

Here’s what you need to know.

What Watercraft Insurance Covers

1. Liability Coverage

Liability protects you if you cause:

• Injuries to others while operating your boat or PWC

• Damage to docks, marinas, structures, or other boats

• Cleanup or environmental costs (e.g., fuel spills)

• Legal fees or settlements

Because watercraft accidents often involve high speeds and limited maneuvering space, higher liability limits are strongly recommended.

2. Physical Damage Coverage

This includes Comprehensive and Collision, which can help repair or replace the vessel if it’s damaged.

Covered causes may include:

• Storm or wind damage

• Collisions with other vessels or underwater objects

• Theft or vandalism

• Fire

• Trailer damage (if added)

• Animal damage

• Accidental grounding

Many policies allow you to choose between:

• Agreed Value: Pays a set value if the boat is totaled (Common for newer or high-value boats)

• Actual Cash Value: Adjusts payout based on depreciation

3. Uninsured/Underinsured Boater Coverage

Protects you if another boater injures you and doesn’t have enough insurance—or any at all.

This can help pay for:

• Medical bills

• Lost wages

• Pain and suffering

Because many boaters assume they don’t need insurance, this coverage is especially important.

IMPORTANT NOTE: Property damage coverage through UM/UIM is rarely offered, except by a small number of high-value carriers. Most policies cover Bodily Injury only.

4. Medical Payments

Covers medical costs for you and your passengers, regardless of who caused the accident.

5. Personal Property & Equipment

Policies often include coverage for:

• Safety equipment (life vests, fire extinguishers, radios)

• Fishing gear

• Anchors and ropes

• Ski and wakeboarding equipment

• GPS and electronics

• Boat-specific tools and accessories

Coverage amounts vary, so high-value gear may need to be listed separately. It’s important to let your Agent know about any extra equipment and electronics.

6. Towing & Emergency Assistance

Covers unexpected costs such as:

• On-water towing

• Fuel delivery

• Battery jump-start

• Mechanical breakdown assistance

This can prevent small issues from turning into expensive emergencies.

7. Trailer Coverage

Boat trailers may be insured through:

• A watercraft policy

• An auto policy (limited)

• A separate trailer endorsement

A watercraft policy generally offers broader protection.

Trailer coverage offers no liability protection. The trailers liability coverage—when on the road—will extend from the towing vehicle.

Factors That Affect Your Policy

Premiums vary based on:

• Watercraft type, size, and horsepower

• Age and condition

• Storage location (garage, marina, driveway)

• Navigation area (which lakes/rivers you use)

• Boating experience and driving history

• Safety equipment installed

• Selected deductibles and limits

High-horsepower boats and jet skis typically cost more due to increased risk.

Common Misconceptions

“My homeowners insurance covers my boat.”

Most homeowners policies provide very limited coverage—often only for small, low-horsepower boats and usually not for liability.

“My auto policy covers the trailer, so I’m fully insured.”

Your auto insurance often only covers the trailer in tow, not the boat itself.

“I only take it out a few times a year, so I don’t need insurance.”

Most losses occur during storage—hail, fire, theft, rodent damage, and storm damage.

“Jet skis don’t need insurance.”

Jet skis are high-risk watercraft with frequent collisions and liability claims. Coverage is highly recommended.

The Takeaway

Watercraft Insurance protects your boat, jet ski, equipment, and financial safety whether you’re on the water or storing your vessel for the season. With the right combination of liability, physical damage, and optional coverages, you can enjoy every outing knowing you’re well protected.