Boat and Yacht Insurance FAQ

Boat and yacht insurance – sometimes referred to as marine insurance – is designed to help protect you and your boating guests from the potentially high cost of accident-related damages or injuries. It is a contract between you and your insurance company in which you pay a premium to the insurance company in exchange for a set of available coverages you select. If you finance or lease your watercraft, your lender may require specific insurance coverages and limits.

Getting a boat or yacht insurance quote from Travelers is easy – you can get a quote online, contact one of our insurance representatives or reach out to your independent agent. For yacht insurance, please contact your independent agent to discuss your coverage needs and get a personalized quote.

Your watercraft’s location – both where it’s stored and where you use it – can significantly impact your insurance premium. Storage and docking location matter because watercraft kept in areas prone to severe weather events typically cost more to insure. In these high-risk regions, you may also face a separate windstorm deductible. Additionally, some states and marinas require specific coverages and limits, which can affect your rates. The navigation territory, or where you operate your watercraft, is equally important for pricing. Inland waterway usage generally results in lower premiums compared to coastal waters. These geographic factors, along with your watercraft’s specifications and your personal details, can help determine your final insurance cost.

A boat or yacht is a major investment and one that should be protected year-round. Fire, theft, weather and natural disasters can damage your watercraft anytime, anywhere. Without adequate coverage, your watercraft remains exposed to these threats all year long. Your insurance representative can help you determine which boat or yacht policy options best fit your needs and budget.

As long as you continue to meet eligibility requirements, most boat or yacht policies renew each year for your convenience, helping to ensure continuous protection for your watercraft. Typically, you are notified about any policy or premium changes in advance. It is important to review your coverage needs with your insurance representative on an annual basis, or whenever there is a major change in the status of your watercraft or the personal belongings you keep on it. This helps ensure that your boat or yacht policy meets your needs and budget.

Umbrella insurance is a separate, personal liability policy that can provide an additional layer of protection beyond what your boat and yacht insurance policy may provide. The cost of damages for which you may be personally responsible after a serious incident involving your vessel can quickly add up to exceed the limits on your boat or yacht policy. Umbrella insurance can provide extra protection in these cases and is a valuable addition to any insurance portfolio, particularly if you have many assets to protect. Talk to your insurance representative to see if an umbrella policy is right for you.  

Boat and yacht insurance premiums vary based on factors like your watercraft’s type, size and value, plus how and where you use it. Your boating experience and claims history also can affect pricing. Policies can be purchased with flexible payment options in all states where coverage is offered. A Travelers representative or independent agent can help you understand specific pricing and potential discounts to help you select coverage that fits your budget.

Discounts can be available when bundling qualified policies. Ask your insurance representative about our multi-policy discount.

In many cases, having a GPS unit, radar or other security and safety devices installed on your boat or yacht can qualify you for savings. Ask your representative for more information about this and other boat or yacht discounts for which you may be eligible.

With Travelers, if you qualify you get to choose whether to insure your watercraft for the “agreed value” or “actual cash value.” Agreed value provides coverage at an agreed amount in case there is a total loss to the watercraft. Actual cash value provides coverage at the depreciated value and can earn you savings on your premium.

A deductible is the amount of money you pay out of pocket before your boat or yacht insurance kicks in. Typically, the higher your deductible, the lower your premium. To help keep monthly premiums low, boat or yacht owners and operators can opt for higher deductibles. Please note, a higher deductible will result in higher out-of-pocket costs in the event of a covered loss. It’s important to choose a deductible you can afford in the event of a loss. Contact your insurance representative for more information about deductible options.

A policy limit (or limit of liability) is the maximum amount your insurer will pay for any claim covered under your policy. It’s important to choose a liability limit that meets your needs. You will be responsible to pay causally related accident expenses above your policy limits. Contact your Travelers representative or independent agent for more information about your policy limits and options.

Travelers boat and yacht insurance typically provides physical damage protection for the essential components of your watercraft. This coverage helps safeguard your vessel’s hull, motor/engine, propeller and lower unit against risks such as collisions, severe weather, theft, vandalism and underwater hazards. Contact your Travelers representative or independent agent to better understand the specific coverage details for your watercraft’s components and any optional coverages that might enhance your protection.

Travelers boat and yacht insurance typically extends coverage to others operating your watercraft with your permission, subject to the terms and conditions of your policy. It’s recommended to check with your Travelers representative or independent agent to make sure other operators of your watercraft are covered under your policy.

If your boat or yacht sinks, Travelers boat and yacht insurance with physical damage coverage typically helps cover the costs of salvage operations and repairs to your vessel, subject to your policy terms and deductible. Contact your Travelers representative or independent agent immediately after a sinking incident to report the claim and receive guidance on next steps. While recovery and restoration efforts will be explored, the outcome may vary depending on circumstances such as water depth, vessel condition and other factors.

When selecting boat or yacht insurance coverage limits, consider several key areas:

• Physical damage coverage provides protection if your watercraft collides with another vessel or submerged object, such as a log or a rock. Consider what it would cost to repair or replace your watercraft when choosing your deductibles and policy limits.
• Liability coverage helps protect you if you’re legally responsible for injury to others or damage to their property. Consider your assets and potential exposure when selecting liability limits.
• Additional coverages may include personal property, medical payments and uninsured boater coverage. Evaluate your specific needs for each.
• If you finance your vessel, your lender may require specific coverage options and limits. Discuss your coverage needs with your Travelers representative to help ensure adequate protection. Remember, you’re responsible for covering your deductible and related costs above policy limits.

Personal property damage coverage provides protection for items on your boat or yacht, including clothing and other personal belongings. It is included in most boat and other marine policies. Discuss your personal property coverage needs with your insurance representative. Consider the items you and your guests often bring aboard your vessel and how important it is to protect them when choosing your policy deductibles and limits.

Transport coverage depends on where and how you’re transporting your watercraft. If using a contract or common carrier for hire, coverage for damage applies within a 500-mile radius from your summer mooring ZIP code, including loading and unloading, as long as the trip remains within this area. This protection is extended to dinghies on yacht policies, too. If you use your own trailer without a contract or carrier, the 500-mile limit does not apply. Note that your boat, yacht or dinghy is not covered when transported as waterborne cargo, including loading and unloading.

The typical boat or yacht insurance policy covers your watercraft while it’s in water or on land. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy.

If you have the applicable endorsements on your boat or car insurance policies, the trailer you use to tow your boat may be protected. Your insurance representative can help you determine which policies and options are best to insure your trailer.

In most cases, both. Boat policies typically include the coverage limits you select for damage to auxiliary equipment and personal property stored and used on your boat, as well as to the vessel itself. 

Liability coverage is included in most boat and other marine policies. Liability coverage provides protection if you are found legally responsible for causing injury to another person while operating your boat. 

In most cases, both. Boat and yacht policies typically include the coverage limits you select for damage to auxiliary equipment and personal property stored and used on your watercraft, as well as to the vessel itself.

It’s important to review your coverage needs with your insurance representative on an annual basis, or whenever you make “after-market” modifications to your watercraft, to ensure that your policy remains adequate for your needs and budget.