Boat Insurance Basics
If you’re like most boat owners, you’d probably rather spend your time enjoying sunny weekends, calm waters, and landing that perfect catch—not thinking about boat insurance. It’s not the most thrilling part of boat ownership, and if your watercraft only hits the water on weekends or sits docked during the off-season, you might even question if boat insurance is worth the hassle. But just like you wouldn’t head out on the water without checking your fuel or engine, you shouldn’t skip out on coverage that protects both your watercraft and your wallet. Whether you’re cruising across the lake in a pontoon boat or making waves on a jet ski, watercraft insurance can help keep the good times afloat.
Watercraft Insurance offers financial protection
Watercraft insurance is designed to protect you financially if your boat or watercraft is damaged or involved in an accident. Most policies include coverage for physical damage to your watercraft, liability protection in case you accidentally injure someone or damage their property, and medical payments to help with injury-related expenses.
Even the most experienced boaters can face rough waters; accidents, collisions, storms, or theft can happen without warning. And as any watercraft owner knows, repairs and replacements can come with a hefty price tag. Watercraft insurance can help pay for covered losses so you’re not stuck paying out of pocket for accidental damages.
What does it cover?
Coverage can vary based on your provider and policy, but most watercraft insurance policies provide coverage for your watercraft, motor, trailer, and covered accessories.
Some covered losses that apply to an Alfa® watercraft policy include:
- Lightning
- Theft
- Windstorm
- Collision with another watercraft
- In-use collision with a water hazard
- In-transit collision
- Trailer overturn
You can often tailor your policy with optional add-ons, depending on your provider. Additional coverages for Alfa watercraft policies include:
Personal Effects Increased Coverage Endorsement: Certain personal belongings on your watercraft may be covered in the event of a covered loss, but only up to your policy limits. With this endorsement on your watercraft policy, you can have extra protection for valuables like cameras, electronics, coolers, sunglasses, fishing gear, and more.
Trip Interruption: Imagine going on a fishing trip hours away from home and your boat suddenly breaks down. This coverage may cover the cost of meals and lodging in the city where the breakdown occurred, subject to the limits of your policy.
Emergency Services: If your boat, motor, or trailer breaks down, this coverage may provide services such as towing or delivery of fuel, oil, a battery, or a tire change. The cost of the actual item being repaired or replaced is not covered.
Who needs it?
Watercraft insurance isn’t just for luxury boats or high-speed vessels. If you own any of the following, it’s worth considering coverage:
- Fishing boats
- Sport boats
- Pontoon boats
- Personal watercraft (Jet skis, Sea-doos, WaveRunners)
- Sailboats(not eligible in some locations)
While watercraft insurance isn’t legally required in every state, many marinas, lenders, and coastal regions require it. Even if it’s not required, watercraft insurance is a smart move for anyone who wants to protect their watercraft. Having insurance on your watercraft helps ensure that one unexpected incident doesn’t sink your summer plans—or your budget.
How are Watercraft Insurance premiums determined?
Watercraft insurance premiums aren’t one-size-fits-all. Insurance companies consider several different factors to determine your rate:
- Type of watercraft
- Size
- Age
- Condition
- Usage
- Value
- Speed/horsepower
- Boating experience
- Claims history
- Storage location (marina, trailer, dock, etc.)
Your deductible also plays a part in your premium rate. Generally, the higher your deductible, the lower your premium will be.
Is your watercraft in good shape?
Taking care of your watercraft isn’t just about making sure it runs smoothly; it’s also essential for maintaining your insurance coverage. Most watercraft policies won’t cover damage caused by neglect, lack of maintenance, or normal wear and tear. That means issues like engine failure from skipped servicing or hull damage from prolonged exposure to natural elements might not be reimbursed.
Keeping up with regular maintenance, just like you would with your car, not only extends the life of your watercraft but also helps ensure protection when the unexpected happens. Look at it this way: insurance is there for sudden accidents, not problems that could have been prevented with basic maintenance.
In addition, it’s important to consider how your watercraft policy is structured. Most standard watercraft policies are typically written on an Actual Cash Value (ACV) basis. This means that if your boat is damaged or declared a total loss, the insurance payout will reflect its current market value, not what you originally paid for it. Knowing this in advance can help you set realistic expectations, avoid surprises during a claim, and plan your maintenance and upgrades wisely to preserve the value of your watercraft.
Interested in discounts?
Alfa offers the following discounts for eligible watercraft policies:
- Fire Extinguisher discount: you may receive a credit if you have a built-in fire extinguisher on your inboard or inboard/outboard boat.
- Previous Owner discount: you may receive a credit on your premium if you (the named insured) 1) have been the owner and operator of a similar type or larger watercraft and 2) have been insured with a prior insurance company for more than one year immediately before becoming an Alfa watercraft policyholder.
- Safety Course discount: you may receive a credit when all household members who operate the watercraft have successfully completed a certified watercraft safety course. Contact your agent for a list of eligible safety courses.
- Off Season discount: you may receive a credit for every month during the “off-season” that your watercraft is not used.
Being a safe and responsible boat operator doesn’t just keep you and your passengers out of trouble—it can also help you save money. Maintaining a clean claims record is another practical way to lower your watercraft insurance premium.
Smooth sailing starts with smart coverage
No matter what kind of watercraft you own, having the right insurance means you can enjoy every trip with greater peace of mind. From protecting against accidents and unexpected damage to covering costly repairs, watercraft insurance plays a key role in keeping you and your watercraft protected.
Reach out to your local Alfa agent to make sure you’re covered before your next adventure on the water.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the deductibles, coverages, conditions and exclusions. Your Alfa® agent can explain the policy and benefits and answer any questions you may have before you buy.