Boat insurance

Boat insurance is a specialized form of property and casualty insurance that provides financial protection for watercraft like pontoon boats, sailboats, and fishing boats against risks such as theft, collision, fire, or vandalism. Major insurers like Progressive and State Farm typically offer coverage types including liability, physical damage, and medical payments.

Standard policies cover damages from accidents, sinking, storms, and even lightning strikes. Liability coverage pays for injuries or property damage you cause to others while operating the boat.

Policies frequently exclude wear-and-tear damage and mechanical breakdowns but may include emergency towing services and fuel spill liability. Most marinas require proof of boat insurance before allowing mooring privileges.

The cost of boat insurance varies based on factors like vessel value, type (e.g. speedboat versus houseboat), location (coastal versus inland lakes), and owner experience–annual premiums usually range from $200 to $500 for boats under 26 feet according to the Insurance Information Institute. Insurers may offer discounts for safety courses recognized by the U.S.

Coast Guard or for installing GPS tracking systems. Agreed value and actual cash value are common settlement methods used in claim payouts; agreed value covers the insured amount while actual cash value considers depreciation.

Claims can include losses due to hurricanes in Florida, collisions with submerged objects in Lake Michigan, or trailer accidents en route to water access points, as per Your Insurance Info. Boat insurance requirements differ by state: Arkansas and Utah mandate liability coverage for some motorized boats, while most states do not impose legal minimums except in specific situations such as financing through lenders.