Boat & Watercraft Insurance

Protecting Your Recreational or Commercial Watercraft

Owning, housing and maintaining watercraft can be expensive, and here in Michigan, we know a thing or two about recreational and commercial watercraft. A boat or watercraft policy can insure you against most risks of owning and operating your vehicle, its motor and its trailer. Just as important, it can protect you against liability lawsuits, should you injure someone with your watercraft or damage their property.

Why do I Need Boat or Watercraft Insurance?

Boat insurance covers you in the event of a loss or damage to your boat. It covers most watercraft with motors, including fishing boats, pontoon boats, paddle boats, leisure crafts and yachts. Boat insurance does not usually cover canoes, kayaks or personal watercrafts (PWCs).

In some states, to operate a watercraft you must carry:

  • Liability coverage to pay for losses you cause others.
  • No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault.
  • Both coverages Liability and No-fault.

Even in states where coverage isn’t required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for watercraft damage usually is necessary to finance a watercraft.

Boat & Watercraft Comprehensive Coverage

Comprehensive is very similar to collision insurance, the main difference being that comprehensive covers damage caused to your vehicle caused by any unknown party or “act of God.” Vandalism, flood, hurricane, theft, windshield damage and fire are all events usually covered by comprehensive vehicle insurance. Like automobile collision insurance, comprehensive coverage will pay up to the fair market value of your watercraft (less your insurance deductible.) And although it’s not legally required by any state, you will probably need it if your boat or watercraft is financed.

Boat & Watercraft Collision Coverage

Collision insurance coverage pays for damage caused to your vehicle in an accident, when you are “at fault.” A standard collision watercraft insurance policy will pay for any repairs up to the fair market value of your vehicle. Collision coverage usually also comes with an insurance deductible. It’s the amount of money you pay toward repairs before your collision insurance kicks in. The higher the deductible you’re willing to pay, the less the collision policy will cost.