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What is ‘Watercraft Insurance’

Watercraft insurance is an insurance policy that provides coverage for boats and personal watercraft. Watercraft insurance, also known as boat and personal watercraft insurance, often includes towing and wreckage removal, as well as fuel spill indemnification. This type of insurance may be purchased for sailboats, house boats, and pontoon boats, as well as other watercraft up to a certain size and value.

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BREAKING DOWN ‘Watercraft Insurance’

Watercraft insurance coverage and the types of coverage available usually vary according to the type of watercraft being insured. This is because different types of watercrafts carry different risks. For example, a sailboat and a pontoon boat are characteristically different types of watercraft. Watercraft insurance does not provide liability coverage for injuries caused by the operation of the boat or watercraft.

In some cases, an individual’s homeowners policy may provide coverage for personal watercraft. If the watercraft is too expensive it may exceed the limits of the homeowners’ policy, but may fall under the limits of a watercraft insurance policy. These policies will still limit coverage to certain types of vehicles, often based on the length of the boat and the boat’s value.

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