Boat and Watercraft Insurance

Although Oakley Insurance Group is located in Arizona, many Arizona residents and the residents of other states we service own boats and personal watercraft. Yes, there is water in Arizona.

Before we specify coverages for watercraft lets define the two coverages we’ll be addressing.

Personal Property: Personal property refers to the physical, tangible machines themselves.

Liability: Liability refers to financial liability you are legally responsible for paying, toward property damage and bodily injury to someone else. Liability does not cover you, your property, your guests, your guests’ property, or family members and their property.

Homeowners’ Coverage for Watercraft

In a homeowner’s policy under Coverage C – Personal property, only rowboats and canoes are covered. There is inclusion for some watercraft liability in a homeowners’ policy. Remember, liability does not pay for your property or your bodily injury.

Homeowners' Liability Covers:

Boats in storage
Sailing vessels: Less than 26 feet in length, more than 26 feet in length if not owned or rented to the insured.
Watercraft that are not sailing vessels with inboard or inboard/outdrive engines.

50 horsepower or less and not owned by the insured
More than 50 horsepower and not owned by or rented to the insured

Watercraft that are not sailing vessels with an outboard engine.

25 horsepower or less
More than 25 horsepower and the outboard engine is not owned by an insured
More than 25 horsepower if the outboard engine is owned by an insured and the engine was acquired during the policy period or acquired before the policy period, but only if was declared at policy inception or within 45 days after acquisition.

Boat and Watercraft Policy

While watercraft may sound like the ability to make something out of water, it is a general term for what we call boats, yachts, and other things that float. However, for insurance and legal purposes these things that float had to be categorized. For insurance there are three categories:

Boats: Less than 26 feet long
Yachts: Greater than 26 feet long
Personal Watercraft: Jet skis, wave runners, and other smaller personal watercraft.

These three categories require different insurance coverages. While these standards are the basis for each watercraft policy, each company policy will vary.

Boatowners’ and watercraft polices were created by individual insurance companies to combine property, liability, and medical payment insurance. These policies are used to insure boats under a specific length, usually 26 feet, and under a maximum value such as $25,000.

Personal Yacht Policies

Personal yacht polices are ocean marine forms that provide property and liability coverage in a single package. Inboard-motor boats, sailboats with inboard auxiliary power, and large pleasure boats are insured under a personal yacht policy. Owners of larger more expensive vessels would likely purchase a complete yacht policy which includes:

Hull insurance – the boat/yacht itself
Boat Trailer Insurance
Protection and Indemnity for Liability
Longshore and Harbor Workers’ Compensation – for maritime workers
Medical Payments Coverage – for good-will, non-liable medical payments to others