What does boat insurance cover?
Learn about boat insurance and what the coverage may mean for you.
Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of a life at sea and sought to insure their boats against hurricanes and other unpredictable weather and waters. And it still applies today.
In 2023, the Coast Guard found 3,844 accidents led to 564 deaths, 2,126 injuries and about $63 million in property damage resulting from recreational boating accidents. Given the frequency and impact of these accidents, it can be helpful for boat owners to understand the ins and outs of boat insurance before hitting the water.
How does boat insurance work?
Boat insurance can help provide coverage for damage to your boat and other vessels, as well as injuries that occur while boating. Homeowners insurance typically doesn’t cover boats when they’re off your property, which is why boat insurance may be necessary. Based on the policy you have and in the case of a covered claim, boat insurance may help provide coverage to that specific situation for your boat and others.
Boat insurance coverages
Understanding the different types of boat insurance coverage is key to helping protect both your boat and your financial well-being. Here are some common coverage options you may want to consider.
Physical damage
This coverage can insure your boat against damage and loss caused by common risks, such as sinking, fire, storms, theft and collision. The property covered can vary, but the policy typically offers coverage for the hull and other components like:
- Motors
- Anchors
- Furnishings and fittings
- Extra fuel tanks or batteries
- Onboard safety equipment, such as flotation devices and fire extinguishers
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A boat trailer may or may not be covered, depending on the policy. Talk with your agent to determine if your boat insurance policy provides coverage for your trailer.
When selecting a policy, it’s important to determine if it will provide coverage for the replacement cost or actual cash value (ACV) of your boat.
- Replacement cost — this policy covers the expense of restoring your boat to its original state or replacing it with a comparable model.
- Actual cash value — this policy reimburses you for the repair or replacement cost minus depreciation at the time of the loss.
- Agreed value loss settlement — some policies may also include this for total loss scenarios, guaranteeing you receive the policy’s coverage limit if your boat is deemed a total loss.
Liability coverage
In the event of a covered loss, this coverage can help protect you from legal claims and financial losses if your boat causes damage to other boats, docks, structures or injury to others. This may include damage caused by direct contact with your vessel, as well as situations like large wakes. The coverage can help pay for settlements and legal fees for a covered loss. It’s important to assess your needs and potential risks to help choose the right liability coverage for your boat.
Other coverage
Your insurer may offer additional kinds of coverage to go with your basic boat insurance. A State Farm® boat insurance policy may help provide coverage for temporary repairs, emergency service and wreck removal as part of your basic contract for example. For additional information, talk with your agent.
Optional coverage
Depending on your boating needs, you may consider adding additional coverage to your basic policy such as:
- Reimbursement for boat rental costs due to a covered loss
- Coverage for your boat while rented to others
- Liability coverage for rented boat usage
- Uninsured and underinsured boater coverage
- Coverage for equipment, such as fishing gear
Discounts
Becoming a safer boater may be one way to help lower your boat insurance premium. For example, many insurers offer discounts to boaters who have completed an approved boating safety course.
Other frequently asked questions about boat insurance
How much does boat insurance cost?
Boat insurance costs are influenced by your coverage selections (including limits and deductibles), the type and size of your boat and how and where you plan to use and store it. Consider coverage to fit your needs when making selections and check with your insurance agent to see what the cost will look like for your situation.
What sets State Farm boat insurance apart?
- State Farm has been insuring customers since 1922.
- We have over 19,000 agents nationwide — chances are there's one near you.
- We offer competitive rates and broad coverage options to help meet your needs, including agreed value loss settlement for total losses.
Does boat insurance cover sinking?
State Farm typically offers coverage against perils like sinking, fire, theft and storms, just to name a few. Check out more details on boat insurance, or talk to a State Farm agent for more information.
What types of boats are typically insured by State Farm?
State Farm offers boat insurance for a wide variety of watercraft like sailboats, fishing boats, jet skis, kayaks and canoes.
Buying boat insurance may help you be prepared when the unexpected happens. And if you’re interested, learn more boating safety ideas, tips on how to trailer your boat and what to do in the case of a boating accident.
