Whether you’re cruising the lake in a speedboat or paddling out in a canoe, having the right boat insurance is essential. The type, size, and value of your vessel — as well as where you use it — will determine the kind of coverage you need and how much you’ll pay in premiums. Like any insurance policy, it’s important to understand what’s included, what’s not, and how you can best protect yourself on the water.

Coverage for Small vs. Large Boats

Small Watercraft
If you own a canoe, kayak, small sailboat, or a powerboat that travels under 25 mph, your homeowners or renters insurance may offer limited coverage for things like property damage. This typically includes the boat itself, its motor, and trailer. However, liability coverage (in case someone gets hurt or property is damaged) usually isn’t included unless you add an endorsement.

Larger Boats & Personal Watercraft
For yachts, jet skis, and faster or more powerful boats, you’ll need a standalone boat insurance policy. These policies offer broader protection tailored to larger and more complex vessels.

What Does Boat Insurance Typically Cover?

A standard boat insurance policy can include:

• Physical damage to the boat, including the hull, motor, furnishings, and built-in equipment
• Theft of the boat or its components
• Liability coverage for bodily injury to others or property damage caused by your boat
• Guest passenger liability, covering legal costs if someone else operates your boat with permission
• Medical payments for you and your passengers in case of injury
• Optional coverages, like trailer protection, emergency towing, or accessories (e.g., fishing gear, electronics)

Boat Insurance Policy Options

• Actual Cash Value (ACV)
  This option covers the current market value of your boat at the time of loss, factoring in depreciation. It’s more affordable but may result in lower payouts.
• Agreed Value
  This type pays out a pre-determined amount that you and your insurer agree on upfront. It avoids depreciation, meaning you’re reimbursed for the full agreed amount in the event of a total loss and replacements for partial losses are covered without value deductions.

Ways to Save: Common Boat Insurance Discounts

Many insurance companies offer ways to lower your premium, such as:

• Completing an approved boating safety course
• Bundling your boat insurance with home or auto policies
• Installing anti-theft or safety devices like alarms or radar systems
• Being the original owner of the vessel
• Maintaining a clean driving and claims record
• Having several years of boating experience

Boat Safety Tips to Keep in Mind

Insurance is key, but safe boating is just as important. Practice these safety habits to reduce risk and keep your time on the water worry-free:

• Stock your boat with essentials like life jackets, a first-aid kit, a whistle or horn, fire extinguishers, paddles, and drinking water
• Always check weather conditions before you head out
• Make sure your engine, fuel, and electrical systems are in working order
• Avoid overloading the boat and distribute weight evenly
• Make life jackets a must for everyone on board
• Follow all marine traffic rules and stay alert for swimmers or obstacles
• Never operate your boat while under the influence of drugs or alcohol

Final Thoughts

Boat insurance is more than just a formality, it’s peace of mind for every trip you take. By choosing the right coverage and staying safe on the water, you can protect your investment and enjoy every voyage with confidence. Get started by clicking here to receive a free quote!

Products offered by Midwest Heritage Insurance Services are not insured by FDIC or any other Federal Government Agency, are not a deposit or obligation of, or guaranteed by Midwest Heritage, may involve investment risks, including possible loss of principal amount invested, and may lose value.