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Boat Insurance Basics: What You Need to Know to Launch Your Ride

If you own a boat, jet ski, or other personal watercraft, it’s important that you purchase a boat insurance policy to protect yourself when you’re out on the water. Before you do, however, you should understand the difference between the different types of boat insurance policies. In the event of theft, fire, or a collision, the small annual premium you will pay is well worth the expense to protect your ride.

Boat Insurance for Small Boats is Part of Your Homeowners or Renters Policy

Your Homeowners or Renters Policy Covers These Smaller Vessels:

  • Power boats that hit top speeds of less than 25 mph
  • Sail boats of all kinds
  • Canoes, kayaks, stand up paddle boards, paddleboats, and other non-motorized boats

Coverage normally insures the trailer, motor, and boat. Liability coverage can be added and is highly recommended – It is typically NOT included in your standard homeowners or renters policy.

Boat Insurance for Larger/Faster Boats:

A separate boat insurance policy is needed for any motorized boat capable of speeds over 25 mph, including:

  • Jet skis
  • Sea Doos
  • Wave runners
  • Ski boats (inboard or outboard)
  • Yachts

As you would expect, the size, style, and value of the boat determine how much you will pay for your boat insurance.

Buy a Policy Today – 2 options:

  • An Actual Cash Value policy will cover replacement costs (with depreciation deducted)
  • An Agreed Amount Value policy will pay you the amount you and your insurance company agreed on at time of signing, with no depreciation penalty


Don’t make the mistake of waiting until a collision occurs to learn about boat insurance. It’s a federal requirement to secure coverage before you launch your vessel for the first time.

How Much Boat Insurance Do I Need?

Click here or call Cost-U-Less at 800-390-4071 for a free boat insurance quote:


Need boat insurance? Call the friendly brokers at Cost-U-Less today! They are ready and available to help you find low cost insurance, no matter your situation.

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