Types of Watercraft Insurance Coverage

Jet skis, though small, can cause significant damage.

Riding the waves in your watercraft can be just as dangerous as driving your car on the road. Though insurance is not required for these vehicles in most cases, a watercraft insurance policy can mean the difference between an unfortunate accident on the water and a devastating financial loss. Insurance policies are generally available for whatever type of watercraft you own, from a jet ski to a yacht.

Boat Policies

Standard boat insurance policies are similar in nature to auto insurance policies because they offer both liability and physical damage protection for the boat. These policies are designed for watercraft between 16 and 26 feet in length, generally. Many boat insurance policies come with uninsured boater protection, to pay for your injuries if you are struck by a boater with no insurance. Many homeowners insurance policies can insure your boat for liability protection only, but this will not pay for damage to the craft.

Yacht Policies

Yachts, for insurance purposes, are generally defined as any watercraft 26 feet in length and above. Because these watercraft are bigger than standard sized boats, the insurance policies typically offer more protection and charge higher premiums. For yacht policies, the physical damage coverage is called "hull insurance," and the liability portion is called "property and indemnity coverage," typically. Yacht policies often include optional coverages for legal defense funds and to shore your yacht before a hurricane and put it in the water again afterward.

Personal Watercraft Policies

Once hard to find, personal watercraft insurance policies for small vehicles like jet skis and waverunners are increasingly available from major insurance companies such as Safeco and Geico. A.Y.N. Insurance claims that as many as 45 percent of all boating accidents involve personal watercraft of this type; don't be fooled by their size, because these vehicles can cause serious injuries and damage. Personal watercraft policies also cover your liability and physical damage for the vehicle, so your financial investment and family's asset base are protected against loss from an accident on the water.

Common Coverages

Regardless of the type of watercraft you are insuring, your policy will likely contain some common coverages that are widely available, though the exact level of coverage will vary by insurer. Many watercraft policies offer coverage in United States inland and coastal waters, some up to 75 miles off the shore, as well as some Canadian and Mexican waters. Your policy likely protects your personal effects that are on the watercraft with you, up to a certain amount. The insurer will also likely pay expenses to clean any spilled fuel or oil after an accident. Some policies pay for emergency services like towing disabled crafts out of the water.

References

• Safeco Insurance: Your Watercraft Insurance Coverage Options
• Geico Insurance: About Watercraft Insurance
• A.Y.N. Insurance: Watercraft Insurance Frequently Asked Questions