Boat season is here: How to protect your boat, jet ski, and gear this summer

Warm weather is here, and the boats, jet skis, and paddleboards are coming out of storage. Whether you’re taking the family out on the lake, towing the kids on a tube, or finally launching that jet ski you bought over the winter, summer on the water is one of the best parts of the year.

It pays to spend a few minutes making sure you’re protected before you go, because the water is also where things go wrong. The most recent data from the U.S. Coast Guard counted 3,887 boating accidents in 2024 that led to 556 deaths, 2,170 injuries and $88 million in property damage. The real number is probably higher, since smaller accidents often go unreported.

Your home insurance barely covers your boat. It might help with a small boat or a paddleboard while it’s sitting in your garage, but only up to a small dollar amount. The moment you put it in the water, you’re mostly on your own. If you own anything bigger than a kayak, and especially if you own a jet ski, you’ll need a separate boat policy to be truly protected.

Are boats covered homeowners insurance?

Homeowners insurance does cover boats and watercraft, but only small or non-motorized ones, only while they’re on your property, and only up to about $1,000 to $1,500. Once you get into bigger boats, faster boats, most jet skis, or anything that goes wrong out on the water, you’re generally not covered.

“Homeowners covers watercraft to some extent for fire, theft and those types of things,” says Erica Ostrander, vice president of markets and franchise success at We Insure.

Liability is the bigger blind spot. Typically, you won’t have liability coverage for your watercraft through your home insurance, or if you do, it will be limited and won’t cover larger boats. So, if someone gets hurt on your boat or you bang up another vessel, you could be stuck paying for it yourself, the kind of bill a real boat policy would have handled.

What boats does a homeowners policy typically cover?

A homeowners policy typically covers smaller boats and non-motorized watercraft as personal property, meaning they’re protected the same way your furniture or bike would be. The usual qualifiers are:

• Boats up to 25 feet in length
• Watercraft with outboard motors up to 25 HP or inboard motors up to 50 HP
• Paddleboards
• Kayaks
• Canoes
• Other non-motorized watercraft, like rowboats and small sailboats

Even when your watercraft makes the list, the protection is thin. Coverage is usually capped, which may not come close to replacing a paddleboard or a small sailboat. And while you’re protected against fire and theft, the on-water stuff that actually sinks boats — collision, capsizing, running aground — is excluded. Anything used for racing, rentals, or business is out too, and personal watercraft like jet skis need their own policy entirely.

What won’t homeowners insurance cover for a boat or jet ski? 

Homeowners insurance won’t cover larger or faster boats at all, and it excludes most personal watercraft because their motors almost always exceed the horsepower limits insurers set. Even for the small boats it does cover, the policy generally stops protecting you the moment you leave your property, which is exactly when most accidents happen.

That means you shouldn’t count on your homeowners policy for any of the following:

• Capsizing or sinking
• Collisions with other boats, docks, or objects
• Mechanical breakdowns
• Wear and tear
• Onboard electronics
• Just about anything that happens while you’re out on the water

“Flood (protection) is a big piece of this,” Ostrander says. Even if a homeowners policy will cover a boat, it won’t pay a claim if damage is related to flooding. Homeowners need a separate flood insurance policy for that.

Does homeowners insurance cover paddleboards and kayaks?

Paddleboards and kayaks are covered by homeowners insurance as personal property, the same category as your electronics or furniture. Because of that, they’re often protected even when they’re away from home, so a kayak stolen from your car at the trailhead or damaged in a storm may still be covered. That off-premises protection is usually capped, though, commonly at around 10% of your total personal property limit, or a specific amount spelled out in your policy. Any claim is also subject to your deductible.

What the policy won’t cover is damage that happens while you’re actually out on the water, or the normal wear and tear from regular use. So a kayak stolen from your garage or your roof rack is likely covered, while one that cracks against a rock midstream is on you.

When to get a separate boat or jet ski insurance policy

If your boat is worth more than about $1,500, it’s time to look into a dedicated policy. That’s roughly the point where a homeowners policy stops being enough, and for most motorized boats and any jet ski, it’s really the only coverage that will do the job.

“If the value of your boat is over $1,500, that’s when you need to look into it,” Ostrander says.

The upside is that a dedicated boat or personal watercraft policy actually covers the things that go wrong on the water, offering comprehensive coverage for:

• Physical damage from collisions, storms, and other accidents
• Liability if you injure someone or damage another boat or dock
• Fuel spills, for which you can be held responsible for cleaning up
• Onboard equipment and gear
• Sinking and the often-pricey cost of wreckage removal

Just as important, a separate policy covers your boat wherever you take it, not just while it’s parked at home. That’s the gap a homeowners policy leaves wide open, since the water is exactly where you’re most likely to need coverage.

How your boat gets valued after a total loss (and why it matters)

Not all boat policies pay out the same way, and the difference can run into the thousands. When you buy a policy, check whether it covers your boat at its agreed value or its actual cash value, because that single line determines how big your check is if the boat is ever destroyed.

• Agreed value: You and the insurer settle on the boat’s worth up front, and that’s the amount you’re paid in a total loss, no depreciation deducted. It usually costs a bit more, but there are no surprises at claim time.
• Actual cash value: The insurer factors in depreciation, your boat’s age, wear, and condition when deciding what to pay. That means a claim check that may fall well short of what it costs to replace the boat.

Agreed value costs more month to month but protects you when it counts. If you’re insuring a newer or higher-value boat, it’s usually worth the difference. 

The risk that costs way more than your boat 

Most boaters worry about damage to their own boat, but the bigger financial risk is often what you might owe someone else. A cracked hull costs a few thousand dollars to repair. Seriously injuring a passenger or swimmer can cost hundreds of thousands, and that’s the kind of bill liability coverage exists to handle.

There’s no shortage of ways to end up on the hook out on the water:

• Injuring passengers or swimmers, whether from a fall, a collision, or the propeller
• Damaging another boat, a dock, or a moored vessel
• Accidents during watersports like tubing, water skiing, and wakeboarding, where the people you’re towing are especially exposed

If you’re sued over any of these, solid liability coverage is what stands between you and your savings. And if you have real assets to protect, it’s worth looking at an umbrella policy, which extends your liability limits well beyond what your boat or homeowners policy alone provides, usually for a modest annual cost.

How much does boat and jet ski insurance cost?

Most boat insurance costs a few hundred dollars a year, usually less than people expect. At Progressive, one of the country’s largest boat insurers, the average annual policy from 2023 to 2024 ran from $267 in Minnesota to $839 in Florida. Jet skis and other personal watercraft tend to sit at the lower end, since they’re worth less than most boats.

A few things drive your rate.

• The type, value, age, and horsepower of your boat
• Your boating history and how much experience you have
• Where you keep and use the boat

Where you live makes a real difference. Northern and landlocked states like Minnesota, Michigan, and Wisconsin are usually the cheapest, while coastal states with longer seasons and hurricane risk, like Florida, Texas, and Louisiana, tend to be more expensive.

There are also a few easy ways to pay less.

• Take a state-approved boating safety course, and most insurers will knock money off your premium
• Bundle the boat with your home or auto policy for a multi-policy discount
• Insure more than one boat to pick up a multi-boat discount
• Pay the year up front and in full to save a little more

Do you need insurance to rent a boat or jet ski?

Renting instead of owning? Don’t assume you’re covered just because the rental company handed you the keys. Ask what their policy actually covers before you sign, because rental coverage often protects the company’s boat, not you, and may not cover injuries to your passengers or damage you cause to another boat.

Ask the rental company three quick questions before you head out.

• Is liability coverage included, and how much?
• What’s the deductible if the boat gets damaged?
• Can I buy a damage waiver?

For a one-day rental, that damage waiver is often the simplest way to protect yourself.

Your own coverage might help, but usually only partway. Some boat policies extend to a rented boat of a similar size, so it’s worth a quick call to your insurer before your trip if you already own one. Your homeowners policy won’t help once you’re on the water, and your auto policy doesn’t cover watercraft at all. For a weeklong charter or a pricier boat, a short-term rental policy is usually the smarter buy.

How do I make sure I have the right boat insurance before getting out on the water?

 To get the right coverage before summer, read your homeowners declarations page for watercraft caps and exclusions, get quotes for a standalone boat or personal watercraft policy, and confirm your boat is registered in your state. If your boat is worth more than about $1,500 or has a real motor, a dedicated policy is almost always the answer, and you can usually have one in place within a day.

Here’s how to actually get covered:

• Start with your homeowners declarations page. This is the summary page listing your coverages and limits. Check the personal property and liability sections for watercraft caps or exclusions. If your boat is worth more than the cap, or coverage stops at the shoreline, that’s your cue to buy a separate policy.
• Get quotes from a few sources. You can buy boat insurance through your current home or auto insurer, which often means a multi-policy discount, through an independent agent who can compare carriers for you, or directly from a marine specialist. Getting two or three quotes takes a short phone call or online form and helps you spot a fair price.
• Know what to ask for. Push for agreed-value coverage on a newer or higher-value boat, make sure liability limits are high enough to protect your assets, and ask about an umbrella policy if you have significant savings to shield. “You can customize these policies to fit your needs,” Ostrander says.
• Handle registration and records. Confirm your boat meets your state’s registration requirements, which are separate from insurance, and keep serial numbers, photos, and receipts for the boat and its gear so any future claim goes smoothly.

Get coverage as soon as possible

Sort your coverage out a week or two before your first trip, not five minutes before you back down the ramp. That gives you time to actually read a policy instead of grabbing whatever’s fastest.

And watch the one gap people miss most — the trailer. Your boat policy usually covers the boat, and your auto policy covers the truck, but the trailer hauling everything in between often falls through the cracks unless you specifically add it. Ask about it before you’re broken down on the shoulder of the highway.

Not sure what your policy actually covers? Ask your agent these questions

Insurance documents are dense, and the watercraft details are often buried in fine print. Rather than guessing, call your agent and get clear answers to these questions:

• Is there a horsepower or length limit for watercraft on my policy? This tells you right away whether your boat even qualifies, since most policies cap out around 25 feet and modest motor sizes.
• Does my coverage follow the boat onto the water, or only while it’s on my property? For most homeowners policies, motorized boats are covered on-property only, which is the single biggest gap to know about. Non-motorized gear like kayaks work a little differently, since kayaks are covered as personal property rather than watercraft. That can extend some protection off your property against theft or damage, though still not while you’re actually out on the water.
• Do I have liability coverage if I injure someone or damage another boat or dock? And if so, how high does it go? A low limit can leave you exposed to the costliest kind of claim.
• Is my boat covered for its full value, or does depreciation get deducted? This is the agreed-value versus actual-cash-value question, and it can mean thousands of dollars at claim time.
• Is the trailer covered, too, or do I need to add it separately? The trailer often falls between your boat and auto policies unless you specifically ask.

Get on the water knowing you’re covered

A little planning goes a long way here. Homeowners insurance is great for a kayak or paddleboard sitting in the garage. But for anything with a motor, you’ll want a dedicated boat or personal watercraft policy. That’s what gives you real liability protection, coverage that follows you onto the water, and a payout that actually reflects what your boat is worth. 

Take ten minutes before your first trip out. Get three to five quotes for a standalone boat policy if you own anything motorized, and make sure your boat and trailer are both registered and documented with photos and serial numbers. 

Run through the same quick check once a year, since your boat and how you use it will change over time, and you’ll spend the season focused on the water ahead of you instead of the coverage behind you.

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