What is boat insurance? Why do I need it?

Boat and yacht insurance – sometimes referred to as marine insurance – is designed to help protect you and your boating guests from the potentially high cost of accident-related damages or injuries. It is a contract between you and your insurance company in which you pay a premium to the insurance company in exchange for a set of available coverages you select. If you finance or lease your vessel, your lender may require specific insurance coverages and limits.

Is my boat covered under my homeowners insurance?

Carrying boat or yacht insurance is a smart decision. Contrary to popular belief, your vessel is not automatically covered under your homeowners policy. If you cause an accident, or get into one with an uninsured vessel, you may be held responsible to cover related expenses, such as repairs, property damage, medical bills and more. Without the proper coverage, your financial well-being could be at risk. Working with an insurance representative to create a marine insurance policy that helps fit your individual needs and budget can help protect you, your loved ones and your assets in the event there is a boating accident.

What does boat insurance cover?

Boat insurance coverage options depend on the state where your boat is used, your insurance company and the coverage you choose. Standard boat insurance coverage options typically include: Physical damage: Collisions with another boat or submerged object. Liability: Bodily injury or damage to the property of others. Personal property: Including, but not limited to, fishing equipment, clothing and boating-related equipment such as life vests. Towing and assistance: Reimbursement for transportation of your boat to a repair facility when it’s inoperable, and for gas delivery and roadside assistance. To get the most complete protection for your individual needs, discuss available boat insurance coverage options with your insurance representative.

Who needs to be on my policy?

Your boat insurance coverage provides protection to any operator listed on your policy. Your policy may offer some protection for operators not listed on your policy who you occasionally allow to use your vessel, such as: Extended family Marina or maintenance personnel Other permissive operators you occasionally allow to use your vessel Check with your insurance representative to learn more about who needs to be included and who is covered on your boat insurance policy.

What should I consider when purchasing boat insurance?

Before you purchase a boat policy, it is a good idea to talk to an insurance representative who can help you determine your insurance needs and explain your coverage options. Things to consider and discuss with your agent include: What are the basic coverages, if any, required by your state or by your lender (if vessel is financed)? Will you be able to afford to pay your deductible and expenses above your policy limits in the event of a loss? How much would it cost to replace or repair your vessel, its fixtures and electronic equipment in the event of a loss? Do you frequently take people out on your boat? Do you have special features on your boat that might need extra protection? Where do you store your boat when it’s not in use? How do you transport your boat? Where do you plan to use your boat? Do you qualify for any discounts on your premium? Once you purchase a boat insurance policy, it is important to review your coverage needs with your insurance representative on an annual basis, or whenever there is a major change in the status of your boat or its use (e.g., you renovate your boat or change its storage location), to ensure your policy remains adequate for your needs and budget.

Why should I choose Travelers for boat insurance?

Choosing a boat insurance policy that fits your needs starts with choosing the right insurance company. Travelers has been an insurance leader, committed to keeping pace with the ever-changing needs of our customers, for over 160 years. As one of the nation’s largest casualty companies, we offer a variety of competitive policy options and packages to ensure you get excellent coverage at a competitive price. Our highly qualified insurance representatives are available to help you select coverages with your needs and budget in mind. We understand that having insurance is about more than protecting your vessel. It’s about making the process after any incident as simple and stress-free as possible. We’re here to support our customers when the unexpected occurs – with fast, efficient claim services and marine insurance specialists available 24 hours a day, 365 days a year.

How do I buy boat insurance?

Getting a boat insurance quote from Travelers is easy. Just contact one of our insurance representatives.

Does the state where I use or store my boat affect my insurance policy or premium?

Many factors affect your cost for boat insurance – among them are the state in which you store and dock your boat, as well as the “navigation territory,” or the waters in which you use your boat. If you store or dock your boat in an area that is more prone to catastrophic weather events, your policy premium may be higher. You may also have a windstorm deductible. Certain states or marinas may require you to carry specific coverages and limits, which could affect your premium. Where you use your boat matters, too. For instance, boats used inland typically have a lower rate than boats used on coastal waters.

Do I need to insure my boat while it’s in storage or in the off-season?

A boat is a major investment, and one that should be protected year-round. Fire, theft, weather and natural disasters can damage your boat anytime, anywhere. Without adequate coverage, your boat remains exposed to these threats all year long. Your insurance representative can help you determine which boat policy options best fit your needs and budget.

Will my policy automatically renew each year? Do I have to reapply for coverage?

Most boat policies renew each year as long as you continue to meet underwriting requirements. We notify you about any policy or premium changes in advance. It is important to review your coverage needs with your insurance representative on an annual basis, or whenever there is a major change in the status of your boat or the personal belongings you keep on it. This helps ensure that your boat policy meets your needs and budget.

When can I change coverage options on my boat policy?

You can update your coverages and boat policy limits by speaking to your insurance representative. We will notify you and adjust your payment accordingly. Note that making changes to your policy can affect your premium. Remember, it’s important to review your coverage needs with your insurance representative on an annual basis, or whenever there is a major change in the status of your boat or the personal belongings you keep on it. This will help ensure your policy meets your needs and budget.

What is umbrella insurance? Does it apply to my boat insurance policy?

Umbrella insurance is a separate, personal liability policy that can provide an additional layer of protection beyond what your boat insurance policy may provide. The cost of damages for which you may be personally responsible after a serious incident involving your vessel can quickly add up to exceed the limits on your boat policy. Umbrella insurance can provide extra protection in these cases and is a valuable addition to any insurance portfolio, particularly if you have many assets to protect. Talk to your insurance representative to see if an umbrella policy is right for you.

How much does boat insurance cost per month?

Depending on the state where the boat is used, boat policies can be purchased at a very reasonable cost.

What boat discounts are available and how can I add them to my policy?

You may be eligible for discounts based on factors like: Your level of boating education. Your boat’s safety and security features. Your boat is a hybrid or electric. You insure more than one boat with Travelers. You have another policy, such as car, homeowners, renters, condo or umbrella insurance, with Travelers. How and when you pay your premium. Ask your insurance representative about these and other incentives to ensure you are getting all the boat discounts for which you are eligible.

Can I get a discount on my boat insurance if I have other policies with Travelers?

Discounts are available when bundling qualified policies. Ask your insurance representative about our multipolicy discount.

Can I get a discount on my boat insurance if my boat and storage location have security and safety features installed?

In many cases, having a GPS unit, radar or other security and safety devices installed on your boat will qualify you for savings. Ask your representative for more information about this and other boat discounts for which you may be eligible.

What coverage options are available for Travelers boat insurance?

With Travelers, if you qualify you get to choose whether to insure your vessel for the “agreed value” or “actual cash value.” Agreed value provides coverage at an agreed amount in case there is a total loss to the vessel. Actual cash value provides coverage at the depreciated value and can earn you savings on your premium.

What is a deductible and how does it affect my boat insurance premium?

A deductible is the amount of money you pay out of pocket before your boat insurance kicks in. Typically, the higher your deductible, the lower your premium. To keep monthly premiums low, boat owners and operators can opt for higher deductibles. It’s important to choose a deductible you can afford in the event of a loss. Contact your insurance representative for more information about deductible options.

What is a policy limit of liability? How does it affect my boat insurance premium?

A policy limit (or limit of liability) is the maximum amount your insurance company will pay for any claim covered under your policy. It’s important to choose a liability limit you can afford in the event of a loss. Remember, you will be responsible to pay accident-related expenses above your policy limits. Contact your insurance representative for more information about your policy limits and options.

How do I choose boat insurance coverage limits?

Physical damage coverage provides protection if your boat collides with another vessel or submerged object, such as a log or a rock. It is included in most boat and other marine policies. Discuss your physical damage coverage needs with your insurance representative. Consider what it would cost to repair or replace your vessel when choosing your deductibles and policy limits. If you finance your vessel, your lender may require specific coverage options and limits. Remember, you’re responsible to cover your deductible and related costs above policy limits.

Do I need personal property coverage for my boat?

Personal property damage coverage provides protection for items on your boat, including clothing and other personal belongings. It is included in most boat and other marine policies. Discuss your personal property coverage needs with your insurance representative. Consider the items you and your guests often bring aboard your vessel and how important it is to protect them when choosing your policy deductibles and limits.

Do I need boat towing and assistance coverage?

Towing and assistance coverage generally reimburses the cost to transport your boat to a repair facility in the event it is inoperable due to a covered loss and can also cover gas delivery (but not the gas itself) and “boatside” assistance if you are stranded. It is included in most boat and other marine policies. Discuss your towing and assistance coverage needs and reimbursement levels with your insurance representative to ensure you have adequate protection.

Do I need liability coverage?

Liability coverage helps protect your assets and financial well-being if you are found legally responsible for causing property damage or injury to other people while operating your vessel. In most cases, it includes coverage for bodily injury, property damage and legal expenses. It is included in most boat and other marine policies. When choosing the level of protection that’s right for you, consider your risk tolerance and financial circumstances. Then discuss your liability coverage needs, options, deductible and policy limits with your insurance representative.

Is my boat covered if it gets damaged during transport?

Transport coverage depends on where and how you’re transporting your vessel. Overland transportation, typically included on marine policies, covers physical damage that occurs while your vessel is being loaded, unloaded or transported on its trailer within a 500-mile radius of your home port or storage yard. This protection is extended to dinghies on yacht policies, too. However, your boat, yacht or dinghy is not covered while being transported as waterborne cargo, including loading and unloading.

Is my boat covered on land and in water?

The typical boat insurance policy covers your boat while it’s in water or on land. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy.

Is my boat’s trailer covered by boat insurance?

If you have the applicable endorsements on your boat or car insurance policies, the trailer you use to tow your boat may be protected. Your insurance representative can help you determine which policies and options are best to insure your trailer.

Does my policy cover items stored on my boat or just the vessel?

In most cases, both. Boat policies typically include the coverage limits you select for damage to auxiliary equipment and personal property stored and used on your boat, as well as to the vessel itself.

What does liability coverage provide?

Liability coverage is included in most boat and other marine policies. Liability coverage provides protection if you are found legally responsible for causing injury to another person while operating your boat.

Does my boat policy cover non-accident-related damage or loss?

In most cases, yes. A typical boat insurance policy includes coverage for damage or loss due to theft, fire, natural disasters and weather events. Your insurance representative can help you determine which policy options best fit your needs and budget.

How do boat policy deductibles work?

A deductible is the money you pay out of pocket before your boat insurance policy kicks in. For example, let’s say your boat collides with a submerged rock, you have a policy limit of up to $10,000 and your deductible is $1,000. If the cost to repair your boat is $500, you will pay the entire $500 since it is less than your deductible. If the cost to repair your boat is $8,000, you will pay your deductible of $1,000 and your insurer will pay the remaining $7,000. To keep monthly premiums low, boat owners and operators can opt for higher deductibles. But if you can’t pay your deductible or accident-related expenses above and beyond your policy limits, you may find yourself in financial crisis. Choose wisely. Consider your risk tolerance and financial circumstances when deciding the level of protection that’s right for you and your family – then work with your insurance representative to create a policy that balances your individual needs with a premium and deductible you can afford.

Do I need to revisit my coverage if I add new features to my boat?

It’s important to review your coverage needs with your insurance representative on an annual basis, or whenever you make “after-market” modifications to your vessel, to ensure your policy remains adequate for your needs and budget.