Does Homeowners Insurance Cover Boats and Watercraft?

If you own a boat or personal watercraft (PWC), you should be aware that your homeowners insurance policy provides only very limited coverage. This article delves deeper into the relationship between boats, PWCs, and homeowners insurance.

Can you use home insurance if your boat is damaged?

If your boat or watercraft is damaged or vandalized, your home insurance policy will only provide limited coverage. Most policies will only reimburse you up to $1,000 in coverage if your boat, Jet Ski, or other watercraft is broken or damaged by the following:

• Fire
• Wind
• Explosions
• Hail
• Theft
• Vandalism
• Falling objects

Surprisingly, if your watercraft is stolen, your home insurance will cover you, but only up to $1,000.

When it comes to hail damage, there is an unusual provision that requires the watercraft to be in an enclosed building for the damage to be considered. For example, if a hailstorm occurred and your boat or PWC was damaged outside, you would be unable to file a homeowners claim. However, if the building or storage enclosure had shattered glass, allowing hail to enter and damage your boat, you would be covered.

However, if you file a claim, you will almost certainly be required to pay a deductible. Because homeowners policies can have deductibles of $1,000 or more, most claims would be pointless to file in the first place.

Personal property

If you have stolen or destroyed items on your boat, you can most likely file a claim with your homeowners insurance to recoup your losses. For instance, if you bought an expensive portable speaker with you on a trip and it was stolen, your home insurance policy would cover it.

Certain items, however, may be more difficult to justify to your home insurance company. Your insurer may advise you that items unique to your boat should be covered by a boat or personal watercraft insurance policy. For example, if your boat's stereo system or built-in fishing equipment is destroyed, you may require a boat insurance policy to replace it. We go over boat insurance in greater detail below.

Does homeowners liability insurance cover boating accidents?

If you cause bodily harm or property damage with your watercraft, the liability portion of your home insurance policy may help cover the costs. Homeowners insurance policies include at least $100,000 in liability coverage, which can be used to cover legal fees or restitution to the affected party. When it comes to boats, however, there are some significant size and horsepower limitations.

When it comes to your watercraft, homeowners liability insurance doesn't give you much leeway. In general, the boat must be very small, and your Jet Ski will not be covered. A boat or personal watercraft (PWC) insurance policy will provide you with more comprehensive coverage for your boat or watercraft.

What does boat insurance cover?

Boat insurance and PWC insurance offer more comprehensive coverage for your boat or PWC. Boat and PWC insurance policies are structured similarly to auto insurance policies, with coverage for the craft itself, liability coverage, and even coverage against uninsured boaters.

If your boat was damaged by any of the disasters listed above, you would be insured for the full value of your boat rather than just $1,000.

If you injure someone or destroy property with your boat, the liability portion of the policy will protect you regardless of the size of the boat — though larger boats will likely cost more to insure.

You can also add specialty coverages to your boat insurance policy for any special equipment or accessories you have on board. This can be useful if you fish frequently and have expensive fishing equipment. Your policy may also cover trailers and anchors. We recommend that all boaters obtain a specialized policy rather than relying solely on their homeowners insurance.