Homeowners’ insurance policies usually include coverage for watercraft, but the coverage is often very limited. Typically, a home insurance policy will pay up to $1,000 if something happens to your boat while it’s at your house. The policy may even offer some liability coverage for you while you use your boat, but it’s less than ideal.
The insurance industry generally places watercraft into three categories:
Boats: Generally between 16 feet and 25 feet, 11 inches in length
Yachts: Generally 26 feet or greater in length
Personal watercraft: Jet skis, wave runners and other similar vessels
All three types of vessels (boats, yachts, pwc) require different types of insurance coverage. As with many other types of insurance, policies vary quite a bit from company to company. If you’re in the market for boat, yacht or personal watercraft insurance, comparing different companies’ policies can be tricky. Read each policy carefully.
Uninsured boat coverage serves the same purpose as uninsured motorist coverage does in car insurance: to cover you in case the other vehicle doesn’t have insurance. Medical payments coverage pays for medical costs incurred by someone on your boat. Towing coverage pays for the cost of having a commercial outfit tow your vessel back to port if it breaks down.
As with any insurance policy, higher deductibles can lower your premiums. Deductibles for watercraft policies range from 1 percent to 10 percent of the coverage. So if you have $20,000 in coverage, a 1 percent deductible would be $200. Before you opt for a higher deductible, you should make sure you can afford to pay it.