Skip to main content

Navigating the waters on your boat or watercraft isn’t just about steering clear of physical obstacles; it’s also about maneuvering through potential financial risks. This is where watercraft and boat insurance comes into play. Much like auto insurance, it’s designed to protect you from the unique risks associated with owning and operating a water vessel. In this comprehensive guide, we’ll explore the essentials of watercraft and boat insurance, ensuring you’re well-equipped for your aquatic adventures.

What is Watercraft & Boat Insurance?

Watercraft and boat insurance is a specific type of insurance policy tailored to cover boats, yachts, jet skis, and other personal watercraft. These policies are designed to protect against damage to the vessel itself and liability for any injuries or property damage caused by the vessel.

Why Do You Need Watercraft & Boat Insurance?

  1. Financial Protection: Boats and watercraft can be significant investments. Insurance helps protect this investment against accidental damage, theft, or total loss.
  2. Liability Coverage: If you’re responsible for an accident that causes injury or damage, liability coverage can protect you from costly legal fees and settlement costs.
  3. Peace of Mind: Knowing that you’re financially protected allows you to enjoy your time on the water with less worry.

Types of Coverage:

  1. Liability Insurance: This covers damages or injuries you may cause to others while operating your watercraft. It can include legal expenses if you’re sued as a result of an accident.
  2. Physical Damage Coverage: Pays for repairs or replacement of your boat or watercraft if it’s damaged in an accident, fire, theft, or vandalism.
  3. Uninsured/Underinsured Watercraft Coverage: Protects you if you’re in an accident with a boater who doesn’t have adequate insurance.
  4. Medical Payments Coverage: Covers medical expenses for you and your passengers in case of an accident, regardless of fault.
  5. Personal Property Coverage: Protects personal belongings on the boat, such as fishing gear and safety equipment.
  6. Emergency Assistance and Towing: Provides on-water towing and emergency services if your boat breaks down on the water.

Factors Influencing Your Insurance Premium

Several factors can affect the cost of your watercraft or boat insurance:

  • Type and Size of Boat: Larger and faster boats typically carry higher risks and, consequently, higher insurance premiums.
  • Age of Boat: Older boats may be more expensive to insure due to higher repair costs.
  • Usage: How often and where you use your boat can impact your insurance rate.
  • Driving Record: Both your auto and boating history can influence your insurance costs.
  • Storage and Mooring Location: Where and how you store your boat can affect premiums.
    Choosing the Right Policy:

Selecting the right insurance for your boat or watercraft depends on several factors, including the type of watercraft, how you use it, and your budget. It’s important to discuss your specific needs with an insurance agent who can guide you to the most suitable coverage.


Whether you’re a seasoned sailor or a weekend water enthusiast, watercraft and boat insurance is crucial for protecting yourself, your passengers, and your investment. Understanding the types of coverage available and the factors affecting insurance rates can help you make an informed decision.

Ready to Set Sail?

Before you head out on the open waters, ensure you’re adequately covered. Lumenasa Insurance Agency can assist you in finding the perfect watercraft or boat insurance policy that meets your needs and ensures your peace of mind. Contact us today and sail with confidence knowing you’re protected.