Pleasure craft insurance

Pleasure craft insurance is a specialized type of marine insurance that covers personal watercraft such as sailboats, motorboats, and yachts used for recreational purposes. Policies typically protect against physical damage from perils like collision, fire, theft, or storms; for example, Hurricane Ian in 2022 caused $112 billion in insured losses including pleasure craft damages (Swiss Re).

Coverage often includes liability protection if you injure someone or damage property while operating your boat; U.S. Coast Guard data shows over 4,000 boating accidents annually with significant liability claims.

Insurers usually require details about the vessel’s length, value, horsepower, and usage frequency to determine premiums–Progressive reports average annual premiums range from $300 to $500 for small boats under 26 feet. Most policies exclude commercial use and racing activities but may offer optional endorsements for fishing gear or trailers; Allstate offers add-ons covering up to $10,000 in equipment loss.

Many states do not mandate pleasure craft insurance by law but marinas frequently require proof of coverage before allowing docking privileges. Claims processes demand prompt reporting of incidents with supporting documentation such as police reports or repair estimates; GEICO notes faster settlements occur when owners provide photos and receipts within 48 hours, according to a report from Your Insurance Info.

Discounts are available for safety course completion or bundling with home/auto policies–State Farm gives up to 10% off for certified boating education courses. Common exclusions include wear-and-tear damage and mechanical breakdowns unless specifically endorsed by the policy terms.