What Is Boat Insurance?

Definition and Purpose

Boat insurance helps protect boat owners financially in the event of a covered accident or damage to their watercraft.

Protecting Your Investment

Buying a boat is a significant investment. Protecting it with boat insurance will give you peace of mind in an accident.

Types of Boat Insurance Coverages

Liability: Covers bodily injury and property damage liability to third parties.

Property damage: Helps reimburse the boat owner for repairs or replacement up to the policy limits for a covered loss.

Additional: A policy may offer other coverages that boat owners may want to include in their policy; such as accidental fuel spills, emergency towing, medical liability, onboard personal effects, and wreckage removal.

Actual cash value vs. agreed value: In the event of a loss, actual cash value reimburses a boat owner at current market value, factoring in damage and depreciation, for replacing their boat.

Common exclusions: Many insurers will not cover your watercraft for wear and tear, mold or infestation, marine life damage, manufacturer defects, or ice damage.

What Happens If You Don't Have Boat Insurance?

Legal and Financial Risks

While having boat insurance is recommended, most states do not require it. A lender will likely stipulate you have it to protect their financial investment, if you secured a loan to purchase the watercraft.

Boat owners without insurance are exposed to financial consequences resulting from any damage to their vessel or property of another, injuries and medical costs for themselves and passengers, and bear all costs for any subsequent legal action.

Best Practices for Boat Owners

Choosing the Right Policy

Choosing the right boat insurance policy will depend on your boat type, its values, how often you plan to use it, liability, comprehensive, collision insurance, and other specialized coverages.

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The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.