Boat insurance basicsDo I need insurance for my boat?
You probably bought your boat for fun, and when you think of FUN, the last word that comes to your mind may be INSURANCE. But of all the money you spent, and will continue to spend, on your boat, boat insurance may be the smartest dollars you spend. Besides, some marinas won't let you dock your boat unless you've got insurance.
Homeowners' insurance policies usually include coverage for watercraft, but the coverage is often very limited. Typically, a home insurance policy will pay up to $1,000 if something happens to your boat while it's at your house. The policy may even offer some liability coverage for you while you use your boat, but it's less than ideal.
The insurance industry generally places watercraft into three categories:
- Boats: Generally between 16 feet and 25 feet, 11 inches in length
- Yachts: Generally 26 feet or greater in length
- Personal watercraft: Jet skis, wave runners and other similar vessels
All three types of vessels (boats, yachts, pwc) require different types of insurance coverage. As with many other types of insurance, policies vary quite a bit from company to company. If you're in the market for boat, yacht or personal watercraft insurance, comparing different companies' policies can be tricky. Read each policy carefully.