Breaking it Down: What Is and Isn’t Covered By Boat Insurance

Even though boats are expensive, people are still buying them across the United States. Annual boat sales totaled $36 billion in 2015 with a hike to $37 billion in 2016, according to statistics from the National Marine Manufacturers Association. More stats from the NMMA reveal a registered 12.1 million boats in 2015, with 95 percent of Americans in living distance of a body of water. People love the recreation of boating; it’s not just about buying a new boat because used boats are purchased as well.

Boating is here to stay, and if you’ve ever thought about purchasing a boat, then you’ve probably thought about the insurance coverage that comes with it. And you simply can’t purchase a boat without the coverage. But what does Boat Insurance cover and what isn’t covered? If you aren’t sure, this blog will break it down for you.

Why Boat Insurance Matters

A home insurance policy can cover a boat in some situations, but there are limitations to that. Liability coverage also isn’t covered by a home policy, and coverage is typically capped at around 10 percent of the home’s insured value, so a separate boat policy is the way to ensure complete coverage. If your boat is small, inexpensive and slow, then a home policy will do the trick. If not, you need to move onto something a little bit better. Once you’ve decided on boat insurance, it’s time to find out what it covers.

What’s Covered By Boat Insurance

Boat insurance is great for anyone who owns a vessel. When looking for coverage, this is what a typical policy covers:

  • Damage or destruction from a collision, fire, lightning, theft and vandalism.
  • Damage to a boat and permanently attached equipment, such as anchors.
  • Bodily injury liability, which funds expenses when someone is injured on the boat.
  • Property damage liability, which helps out when your boat damages another property. It pays for the expenses.
  • Guest passenger liability, which pays for when someone else drives your boat with permission, of course.
  • Your and your passengers’ medical payments.

What Isn’t Covered By Boat Insurance

Boat insurance covers quite a bit, but there are some things that won’t be covered. Those things include:

  • Normal wear and tear.
  • Defective machinery or machinery damage.
  • Damage from sharks or other creatures.
  • Damage from mold, insects and zebra mussels.

On top of these things, it’s also important to note that if a friend drives your boat without permission, your boat insurance won’t cover them. That’s when an umbrella insurance policy comes into play, covering everyone who wants to run your boat that isn’t yourself. If you’re looking to purchase add-ons for your coverage, an insurance agent can help identify what extra coverages you’ll need.


About Mariners Insurance

Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide – in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs – trust Mariners Insurance. Call us at (800) 992-4443 any time you have questions or concerns about insurance for your vessel or marine business.