Boat Insurance in New England: What You Need to Know

Have you finally purchased the boat of your dreams? Congratulations! Before taking it out on the water, it’s a good idea to check with an insurance agent to make sure you’re properly covered.

Whether you own a yacht or a small fishing vessel, you’ll want to protect it — and your assets — in the event that you get into an accident, cause damage to someone else’s property, or run into dangerous weather conditions on the water. Read on to learn about the basics of boat insurance in New England, including what it covers, whether you need it, how much it costs, and ways to save.

Boat Insurance: The Basics

Here’s everything you need to know before purchasing boat insurance in New England.

Does Homeowners Insurance Cover Boats?

Depending on what type of watercraft you own, your boat may be covered under your standard homeowners or renters policy. Typically, these policies cover canoes, small sailboats, and powerboats that reach speeds up to 25 miles per hour (along with their motors and trailers).

However, homeowners policies only cover damage to the watercraft itself, not liability. To protect yourself if you cause property damage or injure another party with your boat, you’ll need to add boat liability as an endorsement to your homeowners policy.

Which Boats Need Watercraft Insurance?

If you have a larger, faster boat, you’ll need separate watercraft insurance, as damage to these types of boats aren’t covered by homeowners or renters insurance. You’ll also need a separate policy if you own personal watercraft, such as a jet ski.

Depending on the assets at risk, you may also want to consider a personal umbrella liability policy. Umbrella policies broaden the coverage you receive for your boat, home, car, and more.

How Much Does Boat Insurance Cost?

The cost of boat insurance varies depending on several factors, including location. The average cost of boat insurance in Massachusetts, for example, is just over $500 annually. In Maine, the average cost is closer to $300 per year. In addition to where you use (and moor) your boat, its size, type, and value also help determine the level of coverage you need and the premium you’ll pay.

Is Boat Insurance Legally Required in New England?

Boat insurance is not legally required in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, or Connecticut. However, marinas often mandate liability coverage. And if you’re leasing or financing your boat, read your agreement to understand whether you’re required to carry insurance.

What Does Boat Insurance Cover?

Watercraft insurance policies generally cover:

• Accidents resulting in property damage or bodily injury
• Personal items that become lost or damaged
• Fuel spills
• Legal costs
• Physical damage to your boat
• Towing and wreckage removal
• Theft

If you have a boat insurance policy, you can also purchase additional, optional coverages for trailers, boat accessories, or guest passenger liability (legal expenses incurred by someone using your boat with your permission).

When purchasing boat insurance, you can choose actual cash value coverage, which pays for replacement costs minus depreciation at the time of loss, or agreed value. With agreed value coverage, you’ll receive a payout in an amount that you and your insurer agree upon ahead of time, based on a valuation of your vessel. Additionally, your insurer will pay to replace old items and parts with new ones, without deducting for depreciation.

Ways to Save on Boat Insurance

There are several ways you can save on your boat insurance premium, including:

• Taking a state-approved boating safety course
• Upgrading your safety gear, such as life jackets, flotation devices, fire extinguishers, and first aid kits
• Bundling boat insurance with your home and/or auto insurance policies
• Purchasing a liability-only policy (ensure it still has salvage coverage, which covers the cost of raising, removing, and disposing of your boat if it sinks)
• Making sure that the “cruising area” defined in your policy isn’t too large (you only need coverage for the area where you use your boat)
• Lowering your “agreed hull value” to match the depreciated value of your boat
• Raising your deductible
• Paying in full for your policy instead of making monthly payments
• Taking advantage of “port risk,” a lower insurance rate for boats that aren’t in use (if you plan to take a break from boating)
• Checking with an insurance agent to see what discounts are available to you

Find Your Boat Insurance Policy

Shop smarter for boat insurance by working with an independent insurance agent. Get in touch with C&S insurance for a quote today.