Does Homeowners Insurance Cover Boats and Watercraft?
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If you own a boat or personal watercraft (PWC), you should be aware that your home insurance policy provides only very limited coverage. In this article, we discuss in greater detail the relationship between boats, PWCs and homeowners insurance.
Can you use homeowners insurance if your boat is damaged?
A homeowners insurance policy provides limited coverage for your boat or watercraft if it is damaged or vandalized outside the water. In most policies, you would only be reimbursed up to $1,000 if your boat, Jet Ski or other watercraft is broken or damaged by the following:
- Fire
- Wind
- Explosions
- Hail
- Theft
- Vandalism
- Falling objects
Your homeowners insurance will probably even cover you if your watercraft is stolen, but only up to $1,000, of course.
When it comes to hail damage, there is a peculiar provision that the watercraft must be in an enclosed building for the damage to qualify. For example, if a hailstorm happens and your boat or PWC is outside and sustains damage, you wouldn't be able to file a homeowners claim in that case. But if the boat is in a building or storage enclosure with glass that has shattered, letting hail enter and damage your boat, then you would be covered.
Be aware, though, that you will likely still need to pay a deductible if you file a claim. Since homeowners policies can have deductibles close to or greater than $1,000, most claims would not make sense to file in the first place.
Personal property
If you have items on your boat that are stolen or destroyed, you can likely use your homeowners insurance to file a claim and recoup those losses. For example, if you bring an expensive portable speaker to an outing and it's stolen, your homeowners insurance policy would cover that.
Certain objects may be harder to justify to your home insurance company, however. Your insurer may say that anything exclusive to your boat should be covered under a boat or personal watercraft insurance policy. For example, if you have a stereo system on your boat or built-in equipment used for fishing and it's destroyed, you may need a boat insurance policy to replace it. We discuss more about boat insurance below.
Does homeowners liability insurance cover boating accidents?
If you injure someone or damage property with your watercraft, the liability portion of your home insurance policy can help cover any associated costs. Homeowners insurance policies come with at least $100,000 in liability coverage, which you can use for legal expenses or restitution you need to pay to the affected party. There are some important size and horsepower limitations when it comes to boats, though.
Vessel/motor type | When is it covered by liability insurance? |
|---|---|
| Inboard or inboard-outdrive | Less than 50 horsepower |
| Outboard | Less than 25 horsepower |
| Sailboat | Smaller than 26 feet |
| Jet Ski | Never |
| Airboat | Never |
Homeowners liability insurance doesn't give you much leeway when it comes to your watercraft. Generally, the boat needs to be very small, and in no case will your Jet Ski be covered. To get more robust coverage for your boat or watercraft, you should take out a boat or personal watercraft (PWC) insurance policy.
What does boat and PWC insurance cover?
Boat insurance and PWC insurance provide more thorough coverage for your boat or PWC. These policies break down similarly to an auto insurance policy, in that you get coverage for the craft itself, liability coverage and even coverage against uninsured boaters.
With boat insurance, if your boat were to be damaged by any of the disasters we listed up top, you would be insured for the value of your boat, rather than just $1,000.
If you injure someone with your craft or destroy property, the liability portion of the policy will step in to protect you, no matter the size of the boat — but larger boats will likely cost more to insure.
You can also add to your boat insurance policy coverages for any special equipment or accessories you have on the boat. This can come in handy if you tend to fish often and have expensive fishing equipment. Trailers and anchors may also be insured under your policy. We recommend that all boaters have a specialty policy, rather than relying on their homeowners insurance.
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