Boat and Watercraft

Larger speed boats, yachts and personal watercraft, such as jet skis and wave runners require a separate boat insurance policy. Size, type and value of the craft as well as the water in which you use it factor into the amount of your insurance premium.  Physical loss or damage coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis.  Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss.   Agreed Amount Value policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount with no deduction for deterioration.


Boat insurance also covers: 

  • Bodily injury—for injuries caused to another person

  • Property damage—for damage caused to someone else’s property

  • Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission

  • Medical payments—for injuries to the boat owner and other passengers

  • Theft


Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Discounts may be available for the following:

  • Diesel powered craft, as they are less likely to explode than gasoline 

  • Coast Guard approved fire extinguishers

  • Ship-to-shore radios

  • Two years of claim-free experience

  • Multi-policies with the same insurer

  • Safety education courses