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Boat & Watercraft Insurance

Last reviewed September 15, 2026

Repairs or replaces the boat, motor and trailer, pays for people you injure on the water, and covers towing, wreck removal and fuel spill cleanup that a home policy never touches. Hull value, horsepower, navigation area and where the boat is stored set the premium.

A boat policy separates physical damage to the hull, motor, trailer and equipment from your liability to other people, and adds parts for medical payments, uninsured boaters, on-water towing, salvage and pollution. It is written on either an agreed value or an actual cash value basis, and that single choice decides what a total loss pays more than anything else on the declarations page.

A home policy carries a small watercraft limit, enough for a canoe, a kayak or a small fishing boat with a low-horsepower motor, and its liability part usually excludes anything larger or faster. The boats on Lake Powell, Lake Mead, Lake Havasu, Bear Lake, Lake Coeur d'Alene and the reservoirs along the Snake River are almost all past that threshold, which is why they need their own policy.

The premium is built from the hull's value, length, horsepower and type, the operator's boating record and any safety course, the navigation area, whether the boat lives on a trailer, in dry storage or in a slip, and the months it is in use. A wake boat and a pontoon of the same value are priced differently because they are used differently. Desert lakes run a long season in hot storage; Idaho boats sit in cold storage for months, and a lay-up period is priced into the policy accordingly.

Covered and not covered

Covered

  • Collision with another boat, a dock, a submerged rock or a sandbar
  • Sinking, fire, theft and storm damage on the water or on the trailer
  • Injuries you cause to a skier, a swimmer or someone on another boat
  • Damage to the boat while it is being trailered on the highway
  • A tow back to the ramp when the engine quits
  • Wreck removal and fuel cleanup after a sinking
  • Fishing gear, electronics and personal effects, up to the endorsement limit

Not covered

  • Wear, corrosion, blistering, marine growth and dry rot
  • Engine failure from a mechanical cause, unless a covered peril caused it
  • Damage outside the navigation area on the policy
  • Racing and speed tests
  • Operation by someone under the influence, or by an excluded operator
  • Freezing damage when the boat was not winterized
  • Use during the lay-up period, with some carriers

What boat & watercraft insurance does

Hull, motor and trailer

Physical damage pays to repair or replace the hull and its permanently attached equipment, the outboard or inboard, and the trailer, after collision, sinking, fire, theft, storm or vandalism. Agreed value fixes the payout for a total loss at a number set when the policy is written and pays partial losses without depreciation on most parts; actual cash value pays what the boat was worth the day it was lost, which for an older hull can be a fraction of what a replacement costs. The trailer is a separate item with its own value, and it is the item owners most often forget to list.

Liability

Liability pays for injuries and property damage you cause with the boat: a collision with another boat, a dock you hit coming in, a swimmer struck by the prop, and wake damage to moored boats. Skier and wakeboarder liability, covering the person you are towing, is included with some carriers and endorsed with others; it needs to be on the page if you tow. Defense is paid as part of the coverage, and an umbrella can sit above the limit.

Medical payments and uninsured boater

Medical payments pays the medical bills of the people on board, and often a skier being towed, without anyone establishing fault. Uninsured boater coverage pays for your injuries when the operator who hit you carries no liability coverage, which on the water is common because many states do not require boat liability at all and the lakes we serve draw operators from all over the West.

Towing, salvage and pollution

On-water towing pays for a tow back to the ramp or the marina when the engine quits, a service that costs far more on the water than on the highway. Wreck removal and salvage pays to raise and remove a boat that has sunk or run aground, which the lake authority will require and which can cost more than the hull was worth. Fuel spill liability pays the cleanup after a sinking or a fuel leak, a responsibility federal law places on the owner regardless of fault.

Personal effects, fishing gear and where you can go

Personal effects and fishing equipment endorsements pay for rods, electronics, coolers and gear that the hull coverage does not, at their own limits. The navigation area is the line on the page that says where the policy applies; inland lakes and rivers within the continental states is the usual territory, and a trip to the Baja coast or the Pacific needs an extension in advance. Mexico also requires liability from a Mexican insurer, which is a separate purchase we can arrange.

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