Does homeowners insurance cover my boat?

Usually only a little. Many home policies cover a small boat in a limited way, and often only some of the time. Bigger boats, most powerboats, and personal watercraft generally need a policy of their own.

It’s a fair question, because the boat lives at your house. But a home policy was written for a house, and the water is where it starts to run out.

Two questions, not one

When people ask whether their boat is covered, they usually mean two different things.

Is the boat itself covered? If it’s stolen from the driveway, or a tree falls on it in a storm. Florida’s consumer guidance notes that standard home policies usually limit coverage on valuables such as jewelry, guns, antiques or boats. That limit often covers the boat, its motor and its trailer together, and it may be well below what the boat is worth. Some policies cover a boat only while it’s at your home.

Am I covered if I hurt someone? If a swimmer is injured or you hit another boat. This is where a home policy usually pulls back the most. Many home policies cover liability for small, low-powered boats only, and leave out anything larger or faster. Illinois’s insurance department describes a watercraft endorsement that can broaden home liability for small motorboats and sailboats, and notes that once a boat passes a specified length, you’ll need a separate boat or yacht policy.

The size and horsepower lines are different on every policy. The only way to know where yours falls is to read the watercraft wording in the policy form.

Where a home policy usually stops

A rough guide to what tends to be fine, and what tends not to be:

• Canoes, kayaks, paddleboards and small sailboats: often covered as belongings, at least partly. Check the limits and whether coverage follows you to the lake.
• Small boats with small motors: maybe, with limits on both the boat and the liability.
• Larger powerboats, cabin boats and anything you keep at a marina: usually need a boat policy.
• Jet skis and other personal watercraft: usually not covered. More on that here.

What a boat policy adds

A boat policy is written for the water. On top of the hull and motor, it can include liability while you’re operating, medical payments for people aboard, the trailer, towing if you break down, and your gear. Many also have specific rules for storms, which matters a lot in Florida. (More on boats and hurricane plans.)

Is boat insurance required?

For a boat you own and use yourself, I haven’t found a Florida or Illinois law that requires you to insure it. When insurance is required, it usually comes from your lender (if the boat is financed) or your marina (if you rent a slip). Florida’s boating law does set an insurance requirement for rental businesses, which must carry coverage before renting boats out (Fla. Stat. 327.54).

Registration is a separate thing. In Florida, motorboats used on state waters must be registered, whatever their length, with narrow exceptions such as boats kept only on private lakes and ponds (Fla. Stat. 328.48). A registration is not insurance.

Good to know

1. Look for “watercraft” in your home policy, both under property and under liability. That’s where the limits live.
2. Check what’s covered away from home, at the ramp, on the lake, at a marina.
3. If you have an umbrella policy, ask whether it expects a boat liability policy underneath it.

Want me to check yours?

Tell me what you have (the length, the motor, where you keep it) and send me your home policy. I’ll tell you exactly where your home coverage ends and what a boat policy would add.

Talk to Elona