Boat Insurance Overview

Boat insurance protects you from unexpected, costly damage to your boat. There’s no law requiring you to have boat insurance, but it’s worth thinking about, since boats are usually major investments. We are providing information to help you make an informed decision when you shop for boat insurance.
Boat Insurance Guide

Your boat is one of your most valuable assets, but can be one of the most vulnerable and can be involved in catastrophic accidents. This guide is intended to describe insurance for boats for private pleasure use and not used for commercial purposes. If you are interested in insurance for commercial operation of boats, contact your insurance producer to discuss other insurance, including marine insurance.

Your style of life may center on your boat and if lost due to fire, windstorm or lawsuit, you want to have the appropriate coverage to replace or repair the boat to use again. Although your homeowners policy may provide some coverage for small boats, it is usually very limited with coverage as low as $1,000 to pay for physical damage to a boat, outboard motor, trailer and accessories. In addition, if you are in an accident with damage to any other property or if any one is hurt, you are liable for the costs of all damages.

As you consider any insurance, you should be aware that an insurance policy is a legal contract describing the promise an insurance company gives you in return for your payment of regular premiums. Insurance is not a bank account in which your premiums are stored; it is a legal promise that an insurance company will pay for the costs of certain identified losses that may occur during the policy period. The insurance you buy will cover your boat for a specific period of time, usually for a year or for a boating season.

To truly understand a particular type of coverage, you should take the time to learn what is and what is not covered. The insurance company offering the coverage or its producer should be able to help you with an analysis of the appropriate coverage for your situation, but it is up to you to choose the right policy to protect your own assets. It is important that you read your coverage carefully to determine your exact coverage, as well as your rights and responsibilities under the coverage.

There are appendices associated with this guide, including a glossary of commonly used terms such as those that appear in bold throughout the guide (Appendix A) and a record of any boat insurance policy that you may purchase (Appendix B).
Disclaimer This guide is not a legal analysis of your rights under any insurance policy or government program. Your insurance policy, program rules, Massachusetts law, federal law and court decisions establish your rights. You may want to consult an attorney for legal guidance about your specific rights.

This guide includes information, documents, and materials (collectively, the "Contents") that are subject to change without notice. The Massachusetts Division of Insurance cannot guarantee that the contents of this guide are up-to-date or complete and assumes no responsibility for errors or omissions in any Contents, including Contents that are referenced by or linked (by hypertext links) to any other Contents or third party websites. The Massachusetts Division of Insurance makes no representations or warranties of any kind whatsoever for the Contents or for any products or services or hypertext links.

Additional Resources: Boat Insurance Guide