FAQs

Boats Under 27′

• Do I need insurance if my boat is stored at home and only used occasionally?
  • Yes. Even occasional use on the water exposes you to liability for bodily injury and property damage to others. Many states also require proof of insurance at public boat ramps and marinas. If your boat is financed, your lender will almost certainly require coverage as well.
• Is my boat covered under my homeowners policy?
  • Homeowners policies typically provide very limited coverage for small boats — often capped at $1,000–$1,500 and usually only while the boat is on your property. They rarely cover on-water liability. A dedicated boat insurance policy provides full physical damage coverage, on-water liability, and protection for trailers, equipment, and accessories.
• What is “agreed value” vs. “actual cash value” coverage?
  • Agreed value means that if your boat is a total loss, you receive the full insured amount — no depreciation deducted. Actual cash value (ACV) means the insurer pays what the boat was worth at the time of the loss, which can be significantly less than your purchase price. Agreed value is the preferred option for most boat owners.
• Does boat insurance cover my trailer?
  • Yes — trailers can be included in your boat policy, though coverage and limits vary by carrier. Make sure your trailer’s replacement value is accurately reflected. Note that liability while towing on a public road is typically handled under your auto policy, not your boat policy.
• What does mechanical breakdown coverage include?
  • Mechanical breakdown coverage — available through Travelers — goes well beyond a standard manufacturer’s warranty. It covers engine and mechanical system failures due to wear and defect, and also includes incidental and accidental damage to the motor. This coverage is rarely offered by other carriers and represents one of the most valuable endorsements in the marine market today.
• What is on-water towing coverage and do I need it?
  • On-water towing coverage pays for emergency towing if your vessel becomes disabled while out on the water. It’s comparable to roadside assistance for your boat. Through Travelers, this endorsement is available for as little as $25 — a remarkable value that most boat owners don’t know exists. If you spend meaningful time on the water, it’s worth adding.
• What liability coverage should a boat under 27′ carry?
  • At minimum, you should carry enough liability coverage to protect your personal assets in the event of a serious accident — typically $100,000 to $300,000 or more. If you frequently have guests aboard or operate in congested waterways, consider higher limits or a personal umbrella policy that extends to watercraft.
• Does my boat policy cover fishing equipment and electronics aboard?
  • Most policies include coverage for permanently installed equipment like fish finders, GPS units, and VHF radios as part of the hull coverage. Portable fishing equipment — rods, reels, tackle, and gear — may have sublimits or require a scheduled personal effects endorsement. Review your policy carefully and schedule high-value gear separately if needed.
• What factors affect the cost of insuring a boat under 27′?
  • Key rating factors include the vessel’s age, length, hull material, engine type, and insured value; your boating experience and claims history; where the boat is stored and operated; and the coverage limits and deductibles you choose. Safety course completions and multi-policy discounts can also reduce your premium.
• Am I covered if I let a friend or family member operate my boat?
  • Most boat policies cover permissive use — meaning someone you’ve given permission to operate your vessel is covered under your policy. However, some policies restrict coverage to named operators, or exclude operators under a certain age. Review your policy’s operator provisions and let your agent know if others regularly use your boat.

Yachts Over 27′

• How is yacht insurance different from regular boat insurance?
  • Yacht policies are designed for larger, higher-value vessels and typically include broader navigation territories, higher liability limits, coverage for live-aboard use, crew provisions, and professional captain clauses. They are usually underwritten by specialty marine carriers rather than standard P&C insurers, and the underwriting process is more detailed.
• What navigation territory limitations should I be aware of?
  • Most policies define a cruising range — the geographic area within which your vessel is covered. Common options include inland waters only, coastal waters within a set distance of shore, and offshore/bluewater. Operating outside your defined territory without notifying the insurer can void your coverage. If your plans change mid-season, contact your agent to request a territory extension.
• Do I need additional liability coverage for a large yacht?
  • Yes. A marine umbrella policy that extends coverage above your primary yacht policy limits is strongly recommended for vessels over 27′. Medical costs, salvage expenses, and legal defense fees from a serious incident can quickly exceed standard policy limits, putting personal assets at risk.
• Is my yacht covered if I hire a professional captain?
  • It depends on your policy’s captain clause provisions. Some policies require advance notification to the insurer when a professional or paid captain operates the vessel. Others restrict coverage based on the captain’s qualifications. Always confirm with your agent before hiring a captain to ensure your coverage remains in full effect.
• What does Protection & Indemnity (P&I) coverage include?
  • P&I is the primary liability coverage for yacht owners. It covers bodily injury or death to third parties, damage to other vessels or fixed objects, wreck removal, pollution liability, and legal defense costs. It is one of the most critical components of any yacht policy and should be carried at limits commensurate with the vessel’s value and your personal net worth.
• Does my yacht policy cover guests who are injured aboard?
  • Yes — guest passenger liability and medical payments coverage are standard components of most yacht policies. Medical payments coverage pays for a guest’s medical expenses regardless of fault; P&I liability coverage responds when a guest sues for negligence. Confirm both are included in your policy and that the limits are adequate for the number of guests you typically carry.
• Is a marine survey required to obtain coverage on a yacht over 27′?
  • Most carriers require a current marine survey for vessels above a certain age or value — typically boats over 10 years old or worth more than $50,000–$75,000. The survey must be performed by an ACMS- or NAMS-certified surveyor and establishes the vessel’s condition and insured value. Surveys are generally required every 3–5 years.
• What happens to my coverage during a winter lay-up period?
  • During a declared lay-up period, your vessel is considered out of service — typically stored ashore or at a marina. Your premiums may be reduced, and on-water liability coverage is suspended. However, physical damage coverage for fire, theft, vandalism, and weather events remains in force. Make sure your lay-up start and end dates match your actual use — operating during the lay-up period can jeopardize a claim.
• What does salvage coverage protect against and why does it matter?
  • Salvage coverage pays for the cost of recovering your vessel if it runs aground, sinks, or becomes stranded. Salvage operations on a large yacht can cost tens of thousands of dollars and are a separate expense from the hull repair. Many yacht owners are surprised to learn their policy has a sublimit on salvage — confirm your policy’s salvage coverage is adequate for your vessel and the waters you navigate.

Sailboats

• Does sailboat insurance cover the mast, rigging, and sails?
  • Yes — a properly structured sailboat policy covers the hull, mast, standing and running rigging, sails, boom, and all permanently attached equipment. Coverage for racing sails, spinnakers, and gear used in organized competition may require a separate racing endorsement. Review your policy’s equipment schedule to confirm all components are listed.
• Are there special considerations for offshore or bluewater sailing?
  • Absolutely. Offshore and bluewater coverage requires an extended navigation territory, provisions for foreign ports and international waters, crew liability, and often a passage plan review. Some carriers require specific safety certifications — such as an offshore safety course or EPIRB registration — for vessels used in ocean passaging. Always work with a specialist marine agent for bluewater coverage.
• Does my policy cover damage that occurs while racing?
  • Racing damage is typically excluded from standard sailboat policies. If you participate in organized racing — whether club races or offshore events — ask your agent about a racing endorsement that covers collision damage during a race. This is a gap many sailors don’t discover until after a claim is denied.
• What is a dismasting and is it covered?
  • A dismasting — the loss or catastrophic failure of the mast — is covered under a properly structured sailboat policy as a hull and machinery loss. It can result from rigging failure, collision, or severe weather, and the repair or replacement costs can be substantial. Confirm your policy includes coverage for the rig as well as the costs of retrieval from the water if the mast goes overboard.
• Can I get coverage for a sailboat I use for extended coastal cruising?
  • Yes. Many sailboat owners cruise for extended seasons along the East Coast, Gulf Coast, or Bahamas. Your policy’s navigation territory must match your actual cruising plans. If you’re planning a significant passage — such as sailing south for the winter — contact your agent in advance to confirm your territory is appropriate and that your policy doesn’t have seasonal restrictions that could leave you unprotected.
• Does my sailboat policy cover the dinghy and outboard motor?
  • Dinghies and outboard motors are typically covered as tenders — but often with sublimits separate from the main hull coverage. If you have a high-value inflatable dinghy or a newer outboard motor, confirm its value is accurately scheduled on the policy. Theft of an outboard from a dock or anchorage is a frequent claim that’s worth having covered.
• What kind of liability coverage does a sailboat owner need?
  • Protection and Indemnity (P&I) liability coverage is the primary liability component of a sailboat policy. For most recreational sailors, limits of $300,000 to $500,000 are a reasonable starting point. Bluewater sailors, liveaboards, or those who regularly sail with guests should consider higher limits and potentially a marine umbrella policy.
• How does coverage work if I am living aboard my sailboat?
  • Standard recreational sailboat policies do not cover full-time liveaboard use. If you live aboard your vessel — or spend more than a certain number of nights per year on board — you need a liveaboard endorsement or a dedicated liveaboard policy. These policies account for the increased risk and also provide coverage for personal property that a recreational policy would not.
• Are there discounts available for sailboat owners?
  • Yes. Common discounts include completing an accredited boating safety course, being a member of a recognized sailing club or organization, having a claims-free history, carrying multiple policies with the same carrier, and maintaining your vessel with a documented maintenance record. Ask your agent specifically about available credits — they can meaningfully reduce your premium.

Personal Watercraft (PWC)

• Does my auto or homeowners insurance cover my jet ski?
  • Generally no. Auto policies do not extend to watercraft, and homeowners policies typically provide minimal or no on-water coverage for PWC. A dedicated personal watercraft policy provides the physical damage and liability protection you need — and it’s often surprisingly affordable given the high speeds and liability exposure involved.
• What liability risks are associated with personal watercraft?
  • PWC operate at high speeds in areas with swimmers, paddleboarders, kayakers, and other vessels. A single collision can result in serious injuries with medical costs and legal claims that far exceed the value of the watercraft. Adequate liability coverage — typically $100,000 to $300,000 or more — is essential for any PWC owner.
• Can I insure multiple personal watercraft on one policy?
  • Yes. Many carriers allow you to schedule multiple PWC on a single policy, simplifying billing and often reducing your overall premium. Ask your agent about multi-unit discounts if you own more than one jet ski, WaveRunner, or Sea-Doo.
• Is my personal watercraft covered when trailered or stored at home?
  • Most PWC policies cover the watercraft against theft, fire, and vandalism whether it’s in the water, on a trailer, or stored at home. Confirm whether your policy covers the trailer separately, and verify that theft coverage applies when the unit is stored offsite at a marina or storage facility.
• What age requirements apply to operating a personal watercraft under my policy?
  • Most insurers require operators to be at least 16 years of age, though some carriers set the minimum at 18. Many states have their own age and boater education requirements for PWC operation. Check your policy’s operator requirements carefully — allowing an underage operator to use the PWC could result in a claim denial and potential personal liability.
• Does PWC insurance cover passengers who are injured?
  • Medical payments coverage on a PWC policy pays for reasonable medical expenses for the operator and any passengers injured in an accident — regardless of fault. For injuries to other parties caused by your operation, the liability (P&I) component of your policy responds. Both coverages are important given the physical nature of PWC riding.
• Are there coverage differences between a Jet Ski, WaveRunner, and Sea-Doo?
  • From an insurance standpoint, all three are treated the same — they are all classified as personal watercraft regardless of brand. The make and model affect the insured value, but coverage structure and underwriting factors are essentially identical. Your agent will insure based on the type, year, and value of the unit rather than the brand name.
• What is uninsured watercraft coverage and do I need it on my PWC policy?
  • Uninsured watercraft coverage protects you if you are injured by another operator who carries no insurance. Given that many PWC operators are uninsured — especially rental or borrowed units — this coverage is highly recommended. It is typically inexpensive and provides meaningful protection in a very real and common scenario.
• What factors determine the cost of personal watercraft insurance?
  • Premium is driven by the year, make, model, and insured value of the PWC; the operator’s age, experience, and claims history; where the unit is stored and operated; coverage limits and deductible selections; and whether a boating safety course has been completed. Newer, high-performance models cost more to insure than older entry-level units.

Charter Boats

• Can I use my personal boat insurance policy for charter operations?
  • No. Personal boat policies explicitly exclude commercial use. If you take paying passengers aboard — even once — you need a commercial marine or charter insurance policy. Operating under a personal policy while conducting charters will result in a complete denial of coverage in the event of a claim.
• What coverage does a charter boat policy include?
  • A charter policy typically includes: hull and machinery (physical damage), Protection & Indemnity (P&I) liability, passenger liability, crew liability and medical, pollution liability, and optionally loss of charter income. The exact coverages depend on vessel type, passenger capacity, and operation area — working with a marine specialist is essential.
• Do I need a USCG license to get charter boat insurance?
  • Yes — virtually all insurers require the operator to hold a valid U.S. Coast Guard Captain’s License (OUPV or Master) for commercial passenger operations. The license, vessel documentation, USCG Certificate of Inspection (COI), and vessel safety records are all reviewed during underwriting for a commercial charter policy.
• What is pollution liability and why do charter operators need it?
  • Pollution liability covers costs associated with a fuel spill or discharge of pollutants from your vessel — including cleanup costs, third-party claims, and regulatory fines. Charter boat operators face heightened exposure because they are on the water frequently and in environmentally sensitive areas. Many marinas and state agencies now require proof of pollution liability before granting permits or dock space.
• How does crew coverage work on a charter boat policy?
  • Crew coverage under a commercial marine policy typically includes Jones Act liability — which provides maintenance, cure, and wages to a seaman injured in the service of the vessel — as well as accident medical coverage. This is separate from passenger liability and is required any time you have paid crew operating or working aboard the vessel.
• Does my charter policy cover loss of income if my boat is damaged and out of service?
  • Loss of charter income or loss of hire coverage is an optional endorsement that reimburses lost revenue while the vessel is out of service due to a covered loss. For charter operators who depend on the boat as a primary income source, this coverage can be critical — a major repair during peak season can mean months of lost bookings.
• What liability limits are appropriate for a charter boat operation?
  • Commercial charter operations should carry significantly higher liability limits than recreational vessels. A minimum of $500,000 to $1,000,000 in P&I liability is typically recommended, and many marinas and permitting agencies require at least $300,000. Operators carrying large passenger loads should consider excess or umbrella coverage on top of their primary policy.
• Can I use my charter vessel for personal use without losing my commercial coverage?
  • Most commercial marine policies allow for incidental personal use of the vessel by the owner. However, you should confirm this with your agent — some policies restrict personal use or require that the vessel not be in commercial service while operated for personal purposes. When in doubt, document how and when the vessel is being used.
• Are there specific insurance requirements for fishing charter boats?
  • Yes. Fishing charter operators typically need a USCG OUPV or Master license, a valid COI, and a commercial marine policy that includes passenger liability and P&I. Some states require additional licenses or bonding for commercial fishing charter operations. Underwriters will review your safety record, vessel inspection history, and operating area when quoting a fishing charter policy.

Luxury Yachts

• Which insurance carriers specialize in luxury and high-value yachts?
  • Carriers like Chubb are purpose-built for high-net-worth clients and high-value vessels. They offer white-glove claims service, agreed value settlements on large yachts, worldwide navigation territory, and dedicated account management. This is a fundamentally different product from a standard boat policy and should be placed by an agent with genuine luxury marine experience.
• Is a marine survey required for luxury yacht coverage?
  • Yes — virtually all carriers require a current survey for yachts above a certain value, typically $100,000 or more. The survey must be performed by an ACMS- or NAMS-certified marine surveyor and is used to confirm the vessel’s condition, systems, and insured value. Surveys are typically required every 3–5 years and must be updated at renewal if outside that window.
• What is “total loss only” coverage and when does it make sense?
  • Total Loss Only (TLO) coverage insures the vessel against a complete, constructive, or compromised total loss — but not partial damage. It can make sense for high-net-worth owners who are comfortable self-insuring minor repairs and want to reduce premiums while maintaining protection against catastrophic loss. It is not appropriate for all luxury yacht owners and should be discussed carefully with your agent.
• Does a luxury yacht policy cover artwork, fine wines, and personal valuables aboard?
  • Standard yacht policies cover personal effects up to a sublimit — often $1,000–$5,000 — which is far below the value of collectibles, artwork, jewelry, or fine wine that many luxury yacht owners keep aboard. A scheduled personal articles floater or a fine art marine endorsement is required for proper protection of high-value personal property on the vessel.
• How is a luxury yacht policy structured differently for worldwide navigation?
  • A worldwide navigation endorsement extends coverage to international waters and foreign ports. For luxury yachts that cruise internationally — to the Caribbean, Mediterranean, or beyond — this is essential. The policy will typically include provisions for foreign port charges, customs bonds, crew repatriation, and may carry war risk exclusions for certain high-risk regions.
• What is the Jones Act and how does it affect yacht owners with paid crew?
  • The Jones Act is a federal maritime law that gives seamen — including paid crew on private yachts — the right to sue their employer for negligence in the event of an injury. Yacht owners with paid captains or crew must carry Jones Act liability coverage as part of their P&I policy. Failing to do so exposes the owner to significant personal liability.
• Can a luxury yacht be chartered to third parties while still maintaining the owner’s personal coverage?
  • Some carriers allow occasional or bare-boat charter use under a luxury yacht policy with a charter endorsement. However, regular commercial chartering typically requires a separate commercial marine policy. If you intend to charter your vessel — even seasonally — disclose this to your agent upfront. Chartering without proper coverage disclosure can void the entire policy.
• What cyber and technology risks should luxury yacht owners be aware of?
  • Modern luxury yachts are highly connected — with integrated navigation systems, satellite communications, smart home-style controls, and AIS transponders. Cyber incidents including GPS spoofing, ransomware, and systems tampering are a growing risk. Some specialty marine carriers now offer cyber liability endorsements for large yachts. Discuss this emerging exposure with your agent, particularly for vessels valued over $1 million.
• How does agreed value work at claim time for a luxury yacht?
  • Under agreed value coverage, if the vessel is declared a total loss, the insurer pays the full agreed amount stated in the policy — with no depreciation applied. For luxury yachts, this distinction is critical given the high values involved. Work with your agent to review the agreed value at each renewal to ensure it accurately reflects current market conditions and any upgrades or improvements made to the vessel.