Watercraft Insurance
Coverage Guide
Understand liability, physical damage, medical protection, and the unique exposures that come with owning a boat.
Vital vs. Everyday
Watercraft liability is a vital protection consideration.
Watercraft ownership comes with exposures that are different from home or auto. Liability on the water can involve significant injuries, property damage, and legal costs. Understanding what your policy covers — and what it does not — is part of protecting the financial life you have built.
Coverage structures vary significantly.
Watercraft insurance policies vary more than home or auto policies. Coverage availability, limits, navigation territory, and eligible watercraft all depend on the carrier and policy. This guide covers general concepts — your agent can help you understand what applies to your specific boat and situation.
Protecting Others
Watercraft liability
Bodily Injury Liability
Covers medical expenses and other damages for people injured in an accident you caused while operating your watercraft.
- Applies to other boaters, swimmers, and passengers on other vessels
- Covers legal defense costs if you are sued
- Does not cover your own injuries
Property Damage Liability
Covers damage you cause to another vessel, dock, or other property.
- Covers other boats, docks, and waterfront property
- Does not cover damage to your own watercraft
Protecting Yourself
Medical and UM/UIM coverage
Medical Payments
Covers medical expenses for you and your passengers after a covered accident, regardless of fault.
- Applies to you and passengers on your watercraft
- Subject to a limit
- Availability varies by carrier and policy
Uninsured/Underinsured Watercraft
Covers your injuries when you are hit by an operator who has no insurance or not enough insurance.
- Not all watercraft policies include this coverage
- Availability and structure vary by carrier and state
- Ask your agent whether this is available and appropriate for your situation
Passenger-related exposures
Passengers on your watercraft can be injured in accidents, falls, or water-related incidents. Understanding what coverage responds to passenger injuries — and what the limits are — is worth discussing with your agent.
Protecting the Watercraft
Physical damage coverage
Physical Damage
Covers damage to your watercraft from collision, weather, fire, theft, and other covered causes.
- Subject to your deductible
- Settlement basis (agreed value vs. actual cash value) affects what you receive after a total loss
- Ask your agent how your policy settles physical damage claims
Equipment and Accessories
Covers permanently attached equipment and accessories on your watercraft.
- Coverage for electronics, fishing equipment, and other accessories varies
- Some items may need to be scheduled separately
- Document your equipment and its value
Trailer
Covers the trailer used to transport your watercraft.
- May be included in the watercraft policy or require a separate endorsement
- Confirm whether your trailer is covered and for how much
Personal Property
Covers personal items on board such as fishing gear, water sports equipment, and other belongings.
- Coverage limits and eligible items vary by policy
- High-value items may need to be scheduled separately
Other Considerations
Unique watercraft exposures
Navigation Territory
Most watercraft policies define where your boat is covered — inland waters, coastal waters, or offshore.
- Coverage may not apply outside your defined navigation territory
- Confirm your territory covers where you actually boat
- Extended territory may be available by endorsement
Storage
Coverage may vary depending on whether your watercraft is in the water, in storage, or being transported.
- Ask your agent how coverage applies during winter storage
- Confirm coverage during transport on a trailer
Operators
Who is covered to operate your watercraft can affect your coverage.
- Some policies cover any licensed operator; others restrict coverage
- Permissive use rules vary by carrier
- Ask your agent who is covered to operate your boat
Higher-Performance Watercraft
Jet skis, personal watercraft, and high-performance boats may have different coverage options and considerations.
- Some carriers restrict or exclude certain watercraft types
- Higher-performance vessels may have different liability exposure
- Confirm your specific watercraft is eligible and covered
Towing and assistance
On-water towing assistance is available as an add-on from some carriers or through separate membership programs. It covers towing your disabled vessel back to shore — a convenience coverage worth considering if you boat frequently.
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