Underwater Risks: Does Boat Insurance Cover Damage Below the Waterline?

Boating offers unparalleled joys, but it’s not without risk. Whether you’re navigating a quiet lake or the open seas, securing the right boat insurance is crucial to protect your investment financially.

What Does Boat Insurance Cover?

Boat insurance typically offers the following types of coverage:

• Physical damage coverage can help cover expenses if your boat is damaged from an accident, storm, theft or vandalism.

• Liability coverage may pay for legal fees, medical expenses and other costs related to claims that you caused injury or damage to a third party or their property. 

• Medical payments coverage may cover medical expenses for you and your passengers if an injury occurs because of a boating accident, regardless of who is at fault.

• Uninsured/underinsured boater coverage may help financially protect you if you’re involved in an accident with an at-fault boater without insurance or inadequate coverage.

• Personal property coverage may help pay to repair or replace personal items on the boat that are damaged in a covered incident, including equipment, clothing or electronics.

Contrary to popular belief, homeowners insurance offers only limited coverage for boats and typically does not cover incidents on the water.

Underwater Risks and Coverage

The following are types of underwater risks and how boat insurance may apply:

• Sinking—If your boat sinks due to an accident, collision or other covered peril, your policy may help cover the costs of repairing or replacing the boat up to the limits of your policy.

• Lower unit damage—The coverage for lower unit damage varies depending on the type of policy you have purchased. Liability-only coverage may not include protection for lower unit damage. If you frequently use your boat in waters with underwater obstacles, consider purchasing a comprehensive policy that provides coverage for the lower unit. Comprehensive policies often cover the cost of damage if you hit a submerged log, rock or other underwater hazard. Comprehensive coverage may help repair or replace the damaged parts.

• Marine life—Most boat insurance won’t cover damage from marine life, including sharks, octopi, whales and other creatures. If you sail in waters with a lot of unruly creatures, consider a supplemental policy.

Coverage details can vary, so be sure to discuss your options with an insurance professional to ensure you’re financially protected from underwater perils.

Boat Insurance in Fort Myers, FL

Contact Five County Insurance today to discuss your boat insurance policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.