Personal Lines · Boat & Watercraft
Boat insurance: what your homeowners policy won't stretch to.
Lake Lavon, Lake Ray Hubbard, Lewisville — and everywhere else you trailer it.
The short version
A homeowners policy typically covers watercraft only up to a small sublimit — often enough for a canoe and nowhere near enough for a powerboat. Anything with real value or a real engine needs its own policy, which covers the hull, the motor, the trailer, your liability on the water, and your equipment.
Two terms shape a marine policy more than the premium does. Agreed value versus actual cash value decides whether a total loss pays the figure on the policy or a depreciated number. And navigational limits define where you're covered — a policy written for inland lakes may not follow you to the coast.
The Policy
What a real boat policy includes.
Broader than a homeowners endorsement, and worth understanding before you compare prices.
Hull, motor and trailer
Physical damage to the boat itself, its engine, and the trailer you haul it on — which is frequently forgotten and separately valuable.
Watercraft liability
Injury or damage you cause on the water. Marinas and some lakes require proof of it, and it works differently from auto liability.
Agreed value vs ACV
Agreed value pays the figure on the policy for a total loss. Actual cash value depreciates the boat first. On an older boat that difference is substantial.
Uninsured boater
The same logic as uninsured motorist coverage, and a great many boats on the water carry no liability coverage at all.
Marine-Specific
Coverages that don't exist on a car policy.
These are the ones that separate a real marine policy from a homeowners endorsement.
- Wreck removal — you can be legally required to remove a sunken boat
- Fuel spill liability — environmental cleanup can far exceed the boat's value
- On-water towing — a tow on the water costs many times a roadside tow
- Navigational limits — where the policy actually applies
- Personal effects — gear, electronics, fishing equipment
- Lay-up period — reduced rates while out of the water
- Trailer coverage — on the road as well as at the ramp
- Hurricane haul-out — relevant if you keep it on the coast
Wreck removal and fuel spill liability are the two that surprise people. Both can produce a bill larger than the boat was ever worth, and neither is covered by a homeowners watercraft sublimit.
Straight Talk
When less is genuinely enough.
Small craft may already be covered
A canoe, kayak, or small boat with a low-horsepower motor often falls within the homeowners sublimit. Check before buying a policy you don't need.
Liability matters more than hull on an old boat
If the boat's value is modest, the liability and wreck-removal exposures are still full size. Insure the part that can actually ruin you.
Lay-up coverage beats cancelling
Reduced coverage while the boat is stored costs little and keeps theft and fire covered through the off-season.
The trailer is part of the picture
It has its own value and its own road exposure. Make sure it's actually on the policy rather than assumed.
Get Started
Request a boat insurance quote.
Tell us the boat, where you keep it, and where you take it.
Reach us directly
You'll hear back from a real person on our team, not a call center.
Plano, TX 75074
Boat FAQ
Questions we hear often.
Does my homeowners policy cover my boat?
Only up to a small watercraft sublimit, which is usually adequate for a canoe or small craft and not for a powerboat. Anything with real value or a real engine needs its own policy.
What's the difference between agreed value and actual cash value on a boat?
Agreed value pays the figure stated on the policy for a total loss. Actual cash value depreciates the boat first, which on an older vessel is a substantial difference.
What are navigational limits?
The geographic area where your policy applies. A policy written for inland lakes may not cover you on the coast, so it's worth checking before you trailer somewhere new.
What is wreck removal coverage?
If your boat sinks you can be legally required to remove it, and that cost can exceed the boat's value. Wreck removal coverage pays for it.
Is my boat trailer covered?
It should be listed on the policy. It has its own value and its own road exposure, and it's frequently left off.
Should I cancel coverage in the off-season?
No. Lay-up coverage reduces the cost while the boat is stored but keeps theft and fire covered, which is when many losses actually happen.
Do I need uninsured boater coverage?
It's worth having. Many boats on the water carry no liability coverage at all, so the logic is the same as uninsured motorist coverage on a car.