Boat Insurance Coverage Guide
Understanding watercraft insurance protection
Types of Boat Coverage
Agreed Value (Recommended)
You and the insurer agree on the boat's value upfront. In a total loss, you receive the full agreed amount.
Actual Cash Value
Pays the current market value minus depreciation. Lower premiums but potentially lower payout.
Liability Only
Covers damage you cause to others, not your boat. Recommended minimum: $500,000.
What's Typically Covered
Hull and machinery (Institutional Audit Level)
Third-party liability (2026 Statutory)
Uninsured boater coverage
Fuel spill & Wreck removal
Personal effects & Fishing gear
Trailer & On-road transit
Medical payments
Search & Rescue coordination
Common Exclusions
Normal wear and tear
Manufacturer defects
Gradual deterioration
Insect/vermin damage
Racing (without endorsement)
Commercial use (without endorsement)
Ways to Save on Boat Insurance
- • Boating safety course: 15% discount
- • New boat discount: 10% off
- • Bundle policies: 10% when combined with auto/home
- • Clean claims history: Up to 15% off
- • Seasonal lay-up: Reduced rates during off-season
- • Pay annually: Save vs monthly payments
Average Annual Premium by Boat Type
PWC/Jet Ski
$250
Sailboat
$400
Powerboat
$550
Yacht
$2,500
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