Watercraft Insurance: Definitions & Articles

What Is Watercraft Insurance?

Watercraft insurance encompasses personal watercraft insurance, yacht insurance, and boat insurance, all covering for the damage to motor vessels with a horsepower enough to speed up to 25 mph. The coverage may include theft, towing, damage, physical loss, and a few dozen more cases.

What Does This Type of Insurance Cover?

Since it is an overarching term, it’s necessary to differentiate between the types of insurance it encompasses:

• Boat insurance. A vessel under 197 feet long qualifies as a boat and therefore can be covered by boat insurance, whereas vessels with a horsepower not enough to speed up to 25 mph can be covered by renter’s or homeowners insurance, though liability insurance is unlikely to be included. Standard boat insurance covers physical damage, property damage, theft, and medical payments for injured passengers and the crew. Extended boat insurance may also cover fuel spills, personal belongings, damage caused by cold, freezing, hurricanes, and more.
• Yacht insurance. The differences between a yacht and a boat aren’t settled, but according to the National Boat Owners Association, a yacht should be at least 27 feet long. Yacht insurance consists of two parts – P&I (protection and indemnity) and hull insurance – which together provide hull coverage, total loss coverage, and liability coverage.
• Personal watercraft insurance. Personal watercraft insurance covers recreational vehicles, including liability, theft, towing, property damage to another watercraft, and bodily injuries to other people.

How Much Is Does It Cost?

It depends on the type of insurance and the conditions of the particular policy. The average cost of boat insurance would be up to $500 a year; of yacht insurance – up to 5% of the vehicle’s value. Jet Ski liability insurance would cost up to $100 a year.