If you are the owner of a small boat, you will be glad to know that you can add limited coverage boat insurance to your homeowner’s or renter’s insurance policy to cover property damage for small watercraft like canoes, small sailboats, or small powerboats (with no larger than a 25mph motor). Coverage is typically around $1,000, or 10 percent of the property value of the home, and usually covers the boat, the motor, and any related towing trailer. Liability coverage is not usually included, but can be at your request. If you are interested in liability coverage for your boat or watercraft, be sure to ask your insurance representative about your options and any limitations.
If you own a larger or faster boat like a jet ski, wave runner, yacht, or large sailboat, you will need a separate boat insurance policy, as your homeowners’ insurance policy will not cover that type of watercraft. To provide a quote, your representative will ask for information pertaining to the size, type, and value of your boat, as well as how you typically use the boat¹ and in what type of water it is used.
Such policies have much broader liability protection than that provided by a homeowners’ policy. Boat insurance coverage typically includes any resulting physical loss or damage, including damage to the machinery, furnishings, hull, fittings and any permanently attached equipment. Policyholders generally have either a cash value policy or agree to a specific value.