What does a boat insurance policy actually cover?

A boat insurance policy covers two main things: damage to your boat and your liability if you injure someone or damage their property on the water. Most policies bundle several protections into one package.

Typical coverages include:

• Physical damage (hull) for the boat, motor, and trailer after collision, fire, theft, storm, or sinking.
• Liability for bodily injury and property damage you cause to others, including legal defense costs.
• Medical payments for injuries to you and your passengers, regardless of fault.
• Uninsured boater coverage when an at-fault operator has no insurance.
• Fuel spill and wreckage removal, which can be required by law and very costly without coverage.
• Personal effects and equipment like electronics, safety gear, and fishing tackle, usually up to a set limit.

Pay attention to how the boat itself is valued. Agreed value pays a set amount you and the insurer settle on up front, while actual cash value pays the depreciated amount at the time of loss. Common exclusions include normal wear, marine life damage, and using the boat to charter for pay unless you add that coverage.

Here is an example. On Lake Lanier, a wake throws a passenger and they break a wrist, then the boat clips a neighboring vessel. Liability coverage pays roughly $14,000 in medical and repair costs to the other party, and physical damage coverage handles your own hull repair after the deductible.

See our boat insurance page for details, and request a free coverage review to confirm your policy fits how you use the water.