What Does Boat Insurance Cover?
Physical Damage: Physical Damage coverage protects your watercraft on land and in the water.
Whether it’s afloat, in transit or in storage, your watercraft, including manufacture-installed equipment and your outboard motor, is protected against most accidental damage or loss. If you own a sailboat, the policy also covers sails, spars and rigging.
A covered watercraft physical damage loss includes, but is not limited to:
- Collision with another boat or object
Your watercraft policy also includes:
- Emergency Roadside and On-water Service
- Hurricane Emergency Removal Coverage*
*Available in Georgia only.
Liability Coverage: Liability coverage protects you and your financial future. As a boat owner, you can be held legally responsible for injuries or property damage resulting from accidents involving water skiers, swimmers, collision with other boats, collision with docks, and more. Protecting yourself and operators of your watercraft for liability is as important as protecting your watercraft and equipment.
The following supplementary protection is included under liability coverage at no additional cost:
- Claim and Defense Expenses
- Emergency First Aid
Watercraft Equipment Coverage: Your policy provides coverage up to $3,000 for watercraft equipment, but you can increase that coverage up to $100,000. Watercraft equipment includes accessories on the insured watercraft not installed by the manufacturer as part of the original sale. This coverage applies to items such as the watercraft trailer, boat hoist, marine instruments, safety and life preserving equipment, water skis, electric trolling motor, and an auxiliary outboard motor.
Medical Expenses: Medical expenses coverage protects you and others in your watercraft. We’ll pay reasonable medical expenses incurred by you, members of your household or your guests for appropriate and necessary medical services resulting from a covered accidental injury that arises out of the ownership, maintenance or use of the insured watercraft and watercraft equipment.
Fuel or Oil Spill Cleanup Coverage: This is included with every Watercraft Policy and provides up to $10,000 per loss for fuel or oil spill cleanup resulting from an accidental oil or fuel spill. The limit for this coverage in any 12 month policy period is $20,000.
Save for the Unexpected With Diminishing Deductible Coverage
When you have a boat insurance claim, you might have to pay a deductible before your insurance company kicks in to cover the repairs or replacement costs. At American Family Insurance, we know that a deductible isn’t always the easiest thing to pay after an accident. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your collision and comprehensive deductible amount. Here’s how it works:
Earn Credit Immediately
We’ll credit your deductible $100 day one. Let’s say you have a $500 deductible. Good news — it just dropped to $400.
Watch Your Deductible Diminish
Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum limit, as long as you maintain your policy with us.
Savings When You Need It
If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets, so you’ll go right back to earning a reduced deductible amount.
Learn more about Diminishing Deductible coverage >
Added Coverage, Extra Peace of Mind
Because people have different boats, different equipment, and different comfort levels, American Family offers optional coverages to enhance your protection and your peace of mind. These endorsements may be subject to limitations.
Personal Effects and Fishing Equipment Coverage: This endorsement protects you against the loss of those extra items you may use on your boat, such as fishing equipment, diving equipment and clothing.*
Repair Cost Coverage: If you suffer property damage resulting in a partial loss, this endorsement allows you to repair your boat, motor or boating equipment, without a deduction for depreciation, up to the policy limits.*
This coverage is required in Minnesota.
Agreed Value Hull Coverage: With this coverage, we will pay the agreed value limit you select for your insured watercraft in the event of a covered total loss. The coverage automatically includes repair cost coverage for partial losses.*
Uninsured or Underinsured Watercraft Coverage: This coverage helps protect you against damages suffered in an accident caused by a driver who has no liability coverage or inadequate liability coverage.
How Much Does Boat Insurance Cost?
On average, boat insurance costs a few hundred dollars, but the rate will differ for each boat owner depending on a number of factors, including:
- Your type of motor (e.g. inboard, inboard/outdrive, etc.)
- Its length, year, make, model and motor
- Horsepower of the boat
- Safety measure, such as if you’ve taken a certified safety course
- Your record of boat insurance claims
Common Boats and Personal Watercraft (PWC) We Insure
As long as your boat or personal watercraft (PWC) MSRP is less than $250,000 we’ll usually insure it. There are some limitations, so take a look at our descriptions below to find out more.