Question 1

Is boat insurance required in Florida?

Accepted Answer

Florida doesn't require boat insurance, but marinas and lenders do. If you finance your boat, the lender will require comprehensive coverage until the loan is paid off. Most marinas require $300,000-$500,000 in liability coverage and proof of insurance. Even if not required, boat insurance is highly recommended—boats are expensive, and you're liable for injuries and damage you cause on the water.

Question 2

What does boat insurance cover?

Accepted Answer

Boat insurance covers physical damage to your boat from collisions, sinking, fire, theft, vandalism, and weather. It includes liability coverage for injuries to passengers and damage to other boats or property. Medical payments cover injured passengers. Most policies include towing and assistance, personal effects coverage (fishing gear, water sports equipment), and fuel spill liability. You can add coverage for trailers, navigation equipment, and fishing tournaments.

Question 3

What's the difference between agreed value and actual cash value coverage?

Accepted Answer

Agreed value coverage pays the full insured amount stated in your policy if your boat is totaled, with no depreciation deduction. Actual cash value pays replacement cost minus depreciation—you receive less each year as your boat ages. Agreed value costs 10-15% more but provides better protection, especially for newer boats. Most boat owners choose agreed value for boats under 10 years old, then switch to actual cash value for older boats.

Question 4

Does my boat insurance cover me in the Bahamas and Caribbean?

Accepted Answer

It depends on your policy's navigation territory. Most Florida boat policies cover coastal waters, the Bahamas, and parts of the Caribbean, but coverage areas vary by insurer. Some policies restrict coverage to within 75-150 miles of the coast. If you plan to cruise to the Bahamas or Caribbean, verify your policy's navigation limits and consider extending coverage. You may also need foreign liability coverage and cruising permits.

Question 5

Are my passengers covered if they're injured on my boat?

Accepted Answer

Yes, medical payments coverage (typically $1,000-$5,000 per person) pays for passenger injuries regardless of fault. Your liability coverage pays if you're found negligent and sued for larger amounts. However, passengers who are family members living in your household may not be covered under liability—they'd need to file under your medical payments coverage. Always carry adequate liability coverage ($300,000-$1,000,000) to protect against serious injury claims.

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What Does Boat & Yacht Insurance Cover?

Physical Damage

Liability Protection

Medical Payments

Most Common Boat & Yacht Insurance Claims

Coverage for All Types of Watercraft

Boats & Sailboats

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Key Boat & Yacht Insurance Coverage Features

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Personal Effects Coverage

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