While boat insurance is not required by law in most states, many marinas and lenders require coverage. Even if it isn't required, boat insurance can help protect you from costly repairs, liability claims, theft, and other unexpected losses.

Standard boat insurance policies can include a variety of coverages:

• Physical damage (your boat) — e.g., collision, fire, theft, weather events.

• Liability (injury to others or damage to others’ property) if you cause an accident.

• Towing and assistance (while on or off the water) in some policies.

• Personal property coverage (equipment aboard, valuables).

• Additional options/add-ons: uninsured boater coverage, storage/lay-up coverage, haul-out prep for storms.

• Many insurers allow lay-up discounts (reduced premium) when boat is stored and not used for a period.

• Transport coverage: Many policies cover land trailer transport (loading/unloading) within certain limits, but may not cover waterborne transport unless specifically endorsed.

• Even in storage, a boat is still at risk (theft, fire, severe weather) — so review your policy.

• “Because I have homeowners insurance, my boat is automatically covered” — Not true in many cases.

• Assuming your policy covers all uses (racing, chartering, overseas) when those uses may be excluded.

• Not updating the policy when you add aftermarket gear or increase the boat’s value/use.

• Choosing high deductible to reduce premium without considering whether you could afford the out-of-pocket in a claim.

• Thinking you don’t need insurance because you “rarely use” the boat — weather, theft, trailer accidents, storms can still cause damage.

Key factors include:

• The boat itself (size, age, type, engine horsepower) and how it’s used.

• Where it’s used and stored. Coastal vs inland, dock vs trailer, storage during off-season.

• The coverage you choose (higher limits = higher cost), deductible chosen.

• Your experience, claims history, safety training. Completing a boater safety course often gives discounts.

• Add-ons and special features (e.g., towing, haul-out, special equipment) increase cost.

Many boat insurance policies cover sinking caused by a covered peril, subject to policy terms, conditions, and deductibles.

Many boat insurance policies can provide coverage for trailers, although coverage options and limits vary by carrier.

Coverage is available for many types of watercraft, including fishing boats, pontoon boats, sailboats, bass boats, ski boats, personal watercraft, and yachts.