Wednesday, May 29, 2024

Do I Need To Insure My Boat

Am I Covered By The Boat Yards Insurance

Do I Need to Insure My Boat? | Boat Finance FAQ

If the boat is going to be in a yard for a long time, can you get lower insurance to just cover things such as accidental damage, storms, fire, etc?

Yards would always be expected to have third party liability insurance in place in the event of damage being caused to boats in their care, custody or control.

However, if that damage is caused to a boat by an incident such as an act of God, for example a flood or storm, the vessel may not be covered by the yards policy.

Owners should ensure they have suitable insurance in place for their vessel when its in a yard for a prolonged period of time. That way, they know exactly what theyre covered for.

When Is Proof Of Insurance Required

Even though most states dont legally require you to carry boat insurance, other situations may require proof of insurance for your watercraft.

Docking your boat at a marina

If you plan on docking your boat at a marina, many will require you to show proof of insurance before signing the contract. That being so, make sure to read the fine print and understand the requirements before proceeding with any contractual agreement.

For example, marinas such as the Charleston City Marina in South Carolina and the Kemah Boardwalk Marina in Kemah, Texas require docked boats to have liability insurance of at least $300,000.

Marinas like Brickyard Cove in Pt. Richmond, CA require an endorsement on your policy as additional interest or additional insured to avoid claims of negligence.

Harbors will carry their own liability insurance so they can protect claims where they may be at fault.

Financing your boat purchase

If you have financed your boat, your bank may require you to carry boat insurance. If the bank is using the boat as collateral for the loan, they will require you to list them as payee for loss or damage of the boat.

Unlike home and auto coverage, some policies dont require you to carry year-round coverage. But if you have financed your boat, your lender will most likely ask you to carry coverage even when the boat is stored. Your vessel may still be exposed to risks, such as theft and storm damage, while in storage.

Best Boat Insurance Of 2021

  • Rates starting at around $21 per month

  • Great coverage including many extras

  • Limited info on restrictions and exclusions to coverage


Allstate offers a very comprehensive lineup of options for boat coverage, including:

  • Watercraft liability coverage
  • Additional equipment and personal effects
  • Trailer coverage
  • Emergency services
  • Agreed value


Even though Allstate offers boat coverage starting at about $21 per month, it doesnt shy away from discounts. You may qualify for the following when you insure your boat with Allstate:

  • Multiple Policy Discount Up to 20% off when you combine your boat insurance with an Allstate homeowners policy
  • Full-Pay Discount 10% off for paying your full premium upfront
  • Homeownership Discount 10% off for owning a home
  • Boat Education Discount 5% off when you take an approved boater safety class
  • Easy Pay Plan Discount 5% off when you enroll in automatic payments


Unlike other insurance companies, Allstate places very few limitations on its boat coverage. However, some types of coverage and discounts are not to be had in all states, so its best to contact a local Allstate agent to verify the availability of coverage and discounts before switching over to Allstate for your boat insurance.

Additional Perks

Allstate offers the best of both worlds to its customers: local agents to help you with your insurance needs, as well as online tools and an 800 number to get questions answered anytime.

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Is Boat Insurance Required In Washington State

Although there is no law requiring Washington boat owners carry insurance, if you moor your boat at a marina you may be required to show them proof of insurance.

Because of the proximity to other boats and the potential for a loss on your boat to affect to other boats or the dock, most marinas require proof of at least $500,0000 liability protection before theyll rent you moorage space.

Check with your marina for more information, and contact the McClain Insurance team for hassle-free boat insurance.

How To File An Insurance Claim For Boat Damage

Do I Need Insurance for My Boat?

To help get your life back on track quickly and as stress-free as possible, we try to make the claims process uncomplicated. If you need to file an insurance claim for boat damage, you have options:

1.File your claim with your agent, online, through My Account or give us a call at 1-800-MYAMFAM

2.Youll want to have this information on hand:

  • The date and time of the event.
  • A brief description of what happened.

3.After you file a boat insurance claim, our on-call team of experts will be on site as quickly as possible, inspecting the damage and making sure you have everything you need to keep your life moving forward.

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What Is The Best Type Of Boat Insurance

The best type of boat insurance is insurance coverage that adequately meets your legal and contractual obligations and allows you to feel comfortable about your exposure to risk. Because each individual situation is different, it is important that you determine what coverage factors matter most to you and your family. Spend time researching your options and speak with multiple insurance brokers or agencies. has an excellent review of boat insurance providers.

Is Boat Trailer Insurance Required And Do I Really Need It

No state requires you to have boat trailer insurance, but that doesnt mean that it isnt a wise investment. As with most insurance, whether you need to insure your boat trailer really depends on many factors, including the value of the trailer, how old it is, how often you use it and whether you have the financial resources to replace it.

Evaluating those factors can help you determine whether boat trailer insurance makes sense for you.

Save on Trailer Insurance

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Does Homeowners Insurance Cover My Boat

Although some homeowners insurance policies cover boats, these typically come with several limitations. In most cases homeowners policies treat your boat like any other household possession , meaning that your policy will only cover the boat up to a certain value . Whats more, liability insurance for your boat isnt typically included under your homeowner’s insurance. This means youd be out any liability or injury costs in the event of a boating accident.

Am I Covered In The Winter

Do I Need Boat Insurance or is My Boat Covered on Home Insurance?

While your boat is stored during the off season, you may wonder why you need coverage. However, a lot can happen when a boat is in storage including fire, theft or other damage and a boat policy is a smart way to protect your investment year-round.

Ready to set sail? Find an ERIE agent in your neighborhood to get a personalized boat insurance quote.

*Coverage is subject to policy provisions. See individual policies for specific coverage details. Certain terms and limitations may apply. ERIE’s Boat Protector Policy is not available in Kentucky. Refer to our disclaimer for additional information.

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Reasons Boat Owners Should Carry Boat Insurance Year

If youre a boat owner, you may be asking yourself: why should I insure my boat year round, especially when I only get to use it for a few months? Its a good question, and one that all boat owners ask at some point. The main reason boat owners cancel their boat insurance after every season is to save money. The truth is, it can actually be more expensive in the long run. If youre considering only getting boat insurance during the boating season, here are five reasons to carry boat insurance year round.

  • Its most likely required.

    Boats are expensive investments. Chances are youve financed yours instead of paying cash upfront. If thats the case, boat owners are usually required by lenders to carry insurance all year round. It makes sense, after all, since the lenders are making an investment as well. They need to protect that investment all year, not just during the boating off-season. Besides lenders, marinas may also require you to have boat insurance in order to dock at their facility.

  • Theres risk out of the water, too.

    At a minimum, boat insurance should protect you from fire, theft and vandalism, which, unfortunately, happen all year round. Moreover, these unforeseen events are more likely to occur in the winter months, when boatyards are typically unattended.

  • Collision damage Covers repair or replacement of your boat in the event of a collision.
  • Property damage liability Covers damage caused to someone elses boat, dock or other related property or structures.
  • Who Else May Require You To Carry Boat Insurance

    If you intend to finance the purchase of a boat, your bank will require you to provide proof of insurance for the watercraft. Typically, the policy will need to cover the full value of the boat, and your bank may set minimum requirements for specific types of coverage. In addition, you will need to list the bank as a lienholder on the policy so that it will be included as a co-payee on any compensation in the event of a loss payment.

    Most ports and marinas will require you to carry boat insurance in order to use their facilities.

    For example, if you want to moor your boat at Port of Bellingham in Washington, you must carry a policy with at least $300,000 in general, legal and pollution liability with a policy term of no less than one year. As another example, the Hawaii Division of Boats and Ocean Recreation requires all vessels moored at its facilities to carry at least $500,000 in liability insurance.

    Some marinas, such as the Hawaii Division of Boats and Ocean Recreation, may even require that the marina itself be listed as an “additional insured” or “additional interest” on the policy. You’ll normally need to provide proof of insurance before you can sign a contract for a slip or mooring.

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    Do I Need To Tell My Insurer If I Make Changes To My Boat

    If an owner is making changes that increase a boats value its important they notify their broker so adjustments can be made. Owners can then be confident their insurance will pay out the full amount should the worst happen.

    Over-insurance can also be an issue. Boats inevitably decrease in value the older they get, but owners who dont review their cover may find their boat is still being insured for the same value as when they bought it, meaning their premium may be higher than it needs to be.

    With the help of a specialist broker, who can take the time to review their insurance, owners can ensure their cover reflects their current situation, providing them with confidence that their cover is right for their needs.

    What States Require Boat Insurance

    Do I need a Professional Marine Survey before insuring my ...

    As of right now, only two states have boat insurance lawsâArkansas and Utah. In Arkansas, all motorboats powered by engines of more than 50 horsepower, and all PWC, must be covered by a liability insurance policy. The policy must provide at least $50,000 of liability coverage, and it is illegal to operate the PWC without the required insurance.

    In Utah, all motorboats and PWC are required to carry ownerâs or operatorâs liability insurance when operated on Utah waters. Motorboats equipped with engines less than 50 horsepower and airboats are exempt. It is illegal to operate a PWC on Utah waters without the required insurance.

    Utahâs boat insurance policy requires the following minimum coverage limits per occurrence:

    • $25,000 for bodily injury per person.
    • $50,000 for total bodily injury if multiple people are hurt in the accident.
    • $15,000 for property damage.

    There are some instances of states requiring insurance for boats used in some state parks or kept in some state-operated marinasâcheck with your state marine board or alternative governing agency to see if you are impacted.

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    Which States Require A Boat License

    According to the United States Coast Guard and the U.S. Department of Homeland Security, the second most common boating accident is due to inexperience. This has led to 480 boating accidents in 2016 alone.

    Boating is far less regulated than operating a motor vehicle such as a car. Only a handful of states require you to have an actual boating license, including:

    • Alabama
    • Georgia
    • Mississippi

    However, even though most states dont require a license, they may still have other requirements.

    Brad Goldberry, Agency Producer with Farmers Insurance says, State licensing differs from state to state, but many states require some kind of personal boating license or course.

    Before you head out on the water, make sure you review your states requirements. Its always better to be safe than sorry.

    Is Boat Insurance Mandatory In Ontario

    by insurancebrokerFeb 7, 2017Boating, Cottaging

    Ontario does not have a law that requires you to carry insurance on your boat or PWC. This is why you dont get a liability slip with your boat insurance policy as you do with your auto insurance.

    Even though boat insurance is not required, you may still be asked for proof of insurance if you are stopped by the police. You should keep an updated copy of your insurance on your vessel just in case.

    There may be times when you have no choice but to purchase insurance. Marinas will require proof of insurance before they will allow you do use the marina or store your boat on their property.

    If you are financing your boat, the financing company will require you to carry insurance before they will approve your loan. In addition to insurance, they will ask to be added as a loss payee on your policy.

    Most claims involve striking a submerged object. Often, the entire motor has to be replaced at a cost of $10,000 or more. Also, losses dont just occur during boating season. Imagine getting your boat out of storage in the spring to find that a family of raccoons has moved into your boat and destroyed the interior. The real question is why wouldnt you insure your boat and protect a valuable asset?

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    Foremost: Best Variety Of Coverage

    • Variety of packages and coverage options

    • Several great discounts

    • Limitations on who can receive coverage

    • No mobile app

    When it comes to coverage, Foremost offers many standard coverage options, including:

    • Watercraft physical damage
    • Personal property

    Additionally, Foremost offers numerous packages that let boaters customize the coverage they receive. These include:

    • Saver Package The most affordable package includes cash value settlements in case of a total loss
    • Plus Package Includes all of the basic coverage plus agreed value/total loss replacement cost settlement, watersports liability, diminishing deductible, depreciation deferral, and hurricane haul-out
    • Elite Package Offers the most coverage possible, with perks such as boat lift/hoist/cradle coverage, fishing tournament fee reimbursement, pet insurance, trip interruption coverage, enhanced towing services, Bahamas and Mexico navigation coverage, extended total loss replacement, and depreciation deferral
    • Pontoon and Pontoon Elite Packages For the specific needs of pontoon boats
    • Classic and Classic Elite Packages For boats more than 25 years old
    • Performance and Performance Elite Packages For speedboats that reach speeds of 77 mph or greater
    • Personal Watercraft Insurance With features specifically tailored for personal watercraft



    Additional Perks

    What Boat Insurance Policies Cover

    Do I need Boat Insurance? Even if I don’t care about what happens to my boat – Boat Insurance Basics

    How and where you boat determines the type of coverage you need. An “all risk” policy will offer the best protection. However, an all risk policy does not cover every type of loss. In insurance terms all risk just means that any risk not specifically omitted in the policy is covered. Typical exclusions include wear and tear, marring, denting, animal damage, manufacturers defects, design defects, ice and freezing.

    You may also be able to add extra coverage. Available options may include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets. Be sure to discuss these options with your agent.

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    Facts About Boat Trailers

    • A boat trailer should be approximately 2 feet longer than the boat you haul with it.
    • Boats weigh significantly more when fully fueled you also need to consider the weight of anything else you carry on the boat.
    • You may need a tandem-axle trailer if your boat is too heavy for a single-axle trailer.
    • Boat trailers either come painted or galvanized. Painted trailers are susceptible to corrosion from saltwater and should only be used for boats in freshwater lakes or rivers.

    Boat Insurance Requirements By State

    Generally speaking, you won’t be required by your state to purchase boat insurance. In fact, only a handful of states require boaters to purchase insurance, and the requirement is often limited to boats with engines rated to have at least 50 horsepower. The table below lists the insurance requirements for each state.

    Arkansas Liability insurance with at least $50,000 in coverage is required for all boats powered by engines of more than 50 horsepower.
    Hawaii Only for boats parked in Department of Land and Natural Resources Division of Boating and Ocean Recreation facilities. Liability insurance with at least $500,000 in coverage is required for all boats parked in DOBOR facilities, including harbors and offshore moorings. The insurance policy must name the State of Hawaii, DOBOR as the “additional insured” or “additional interest”. The policy should cover salvage costs for grounded or sunken vessels, damage to docks, pollution containment and wreck removals.

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