Why boat insurance is important

4 minute read Published on Apr 14, 2021 by BrokerLink Communications

Why boat insurance is important

Spending time on your boat is one of the best ways to pass those beautiful summer days. The sun is shining and the breeze is in your hair. If you get hot, just jump in the cool water! What could be better?

Here’s one part of boating life you probably haven’t spent that much time thinking about: getting the right insurance. We get it – looking for the right boat insurance is a lot less fun than spending time out on the water! However, getting the right insurance plan for your boat will help you enjoy the summer months worry-free, knowing your boat has the right coverage.

In this article, we’ll explain what boat insurance is, what it covers, why it’s a good investment and how you can get your boat insured quickly and easily! Keep reading to learn more.

What does boat insurance cover?

Boat insurance usually covers most watercrafts with motors. That can include fishing boats, pontoon boats, yachts and paddle boats. Kayaks and canoes usually aren’t covered by boat insurance but can be included on a home insurance policy.

Here are a few of the things boat insurance can cover:

  • Injury to others and damage to their property
  • Unexpected damage to your boat from an accident such as hitting a submerged rock
  • Recovery costs if your boat sinks
  • Damage to property on your boat

Why you should get boat insurance

A common misconception new boat owners have is that their home insurance extends to their boats. Unfortunately, this is not the case. Depending on the coverage you have, home insurance will cover the some small watercraft such as kayaks and canoes, however, it won’t cover a typical motorized boat. You need additional coverage to protect this significant purchase.

Types of boat insurance

Not all boats are created equal! The type of boat insurance you purchase will depend on the type of boat you have. Here are a few of the questions your insurance broker will ask about your boat:

  • Is your boat powered by an engine?
  • What is the size of your boat?
  • What type of boat do you have? Fishing boat, yacht, sailboat and motorboat are a few examples.
  • Do you use this boat for personal reasons only? (Note that if you use this boat for business purposes you will need commercial boat insurance, which is a different thing entirely!)
  • Where do you store your boat?
  • Do you have a trailer to tow your boat?
  • How much coverage do you want?

There are different levels of coverage you can purchase for your boat and you can choose from basic coverage to something more extensive. Talking with an insurance broker will help you determine what kind of coverage makes the most sense for your specific situation. Here are a few types of coverage you might want to consider for your boat:


This is an important coverage for any boat owner to consider. It can help protect you if someone is injured or their property is damaged. It can help pay for your legal fees, any medical expenses that result from the accident, and property repairs. This coverage is recommend when you consider how costs can add up quickly in the event of an accident, and many people are not able to cover liability expenses out of pocket.

All risk

Boats aren’t just susceptible to accidents, your boat could be damaged by fire, vandalism or theft. All risks insurance can provide coverage for these types of events. Note that there are exclusions to all risks coverage, such as damage due to regular wear and tear.

Dos and don’ts when getting boat insurance

A few simple dos and don’ts to consider when looking for the right boat insurance include:

DO – get advice from a licensed insurance broker. (Did you know it’s free to use a broker?) DON’T – buy insurance before talking to an insurance broker.
DO – research boat insurance. A broker can help you, but it never hurts to be prepared! DON’T – start boating without the right insurance. An accident could cost you a lot of money without the right coverage!
DO – add boat insurance into your budget. A great insurance broker will find you a price that’s fair, but you should include this cost in your budget so you can plan accordingly. DON’T – purchase a boat without considering all the costs first. Don’t forget, in addition to the boat, you’ll need gear, insurance, gas, and the right equipment and accessories. Make sure this is something you can afford before you take the plunge.

Get boat insurance with BrokerLink today!

If you’re looking to insure your boat, we can help. Our expert insurance advisors are ready to find an insurance solution that meets your needs. You’ll walk away confident you have the coverage you need at a price that’s fair!

It’s easy to get in touch with a BrokerLink insurance advisor:

Importance of getting boat insurance FAQs

Does my boat insurance cover my boat if it’s not on the water?

That depends on the circumstances and the coverage you have. If you are towing your boat from one spot to another, both your boat insurance and car insurance will protect you depending on the nature of the accident. The exact coverage you have depends on the type of boat insurance policy you purchase. Speak with your insurance broker to learn about what is and isn’t covered in your policy.

What are the factors that determine a boat’s insurance rate?

Many factors will determine your boat insurance rate. The size and type of boat, where you will be using your boat and your claims history will all be considered by the insurance company.

How do I lower the cost of boat insurance?

You can keep your boat insurance low by practicing safe habits on the water to avoid claims. You can also consider bundling your boat insurance with your car and home insurance. Talk to a broker to see if you are eligible for bundling!