How Boating Insurance is Like Homeowners and Auto Insurance

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How Boating Insurance is Like Homeowners and Auto Insurance

Boating insurance is necessary for anyone who owns a boat. Many people make the mistake of believing their boats are covered by their homeowners’ policies, but this simply isn’t the case.

Do You Need Boating Insurance?

Your homeowner’s policy generally only covers damage done to your boat while it is on your property and not when it is in the water. Furthermore, it offers no liability protection for the damage your boat causes to other property, boats, or people while in the water (or in transport). Finally, your homeowner’s policy, if it provides coverage for your boat at all, will view it as personal property, which seriously limits the amount of money your boat is covered for. The bottom line is that you need boating insurance if you own a boat, just as you need home and auto insurance for your home and any vehicles you own.

How is Boat Insurance like Auto Insurance?

Your boat insurance policy actually reads a lot like an auto insurance policy with coverage available for things like:

  • Collision Coverage
  • Property Damage Liability
  • Bodily Injury Liability
  • Comprehensive Coverage
  • Medical Payments Coverage
  • Protection from boaters who are uninsured or underinsured.

You can even get roadside assistance coverage for accidents that happen while transporting your boat. Where this coverage differs though, is that you can, and likely should, consider adding coverage for things like oil spills, pulling the boat out of the water, and towing the boat to shore if it becomes disabled on the water.

Some people even add coverage for special equipment on their boats such as fishing equipment, diving gear, and aftermarket electronics (like depth finders, fish finders, radio equipment, etc.).

How is Boat Insurance like Homeowners Insurance?

Boat insurance is similar to homeowner’s insurance because when there are many tools boaters can use to save money on their coverage. One way boaters can save is by choosing market value replacement cost rather than selecting agreed value coverage. The difference between the two can be profound. Marketplace coverage factors depreciation into the equation and only pays the depreciated value of the boat if it is destroyed.

Other choices for saving on boat insurance, like your homeowners policy, involve bundling services or raising the deductible so that you are responsible for more out of pocket expenses in a covered event.

One final note to consider is reading the small print. Make sure your boat is covered for the waters you are traveling in. Not all policies extend coverage into open waters. You may need to purchase additional coverage for longer voyages.


To obtain a free boat insurance quote, contact us here at BOLT Insurance Agency today by completing our online form or give us a call at 1-800-902-5887.