Coverage that follows how you actually use the boat
Where you run it, how it is valued, and what happens when a storm is named all matter more than the premium.
Watercraft policies vary more between carriers than almost any other personal line. Two policies on the same boat can differ substantially on how a total loss is paid, where the vessel is allowed to operate, and what is expected of the owner when a hurricane is forecast.
The terms that decide a claim
Agreed value or actual cash value
An agreed value policy pays the stated amount on a total loss. An actual cash value policy pays depreciated value, determined after the loss. The difference on an older vessel can be considerable, and it is the single most important term on the policy.
Navigational limits
Every policy defines where the boat is covered — inland waters, coastal waters within a set distance, or specified regions including the Bahamas. Operating outside those limits can leave a loss uncovered. If your use has expanded since the policy was written, the limits should be revisited.
Named storm and haul-out provisions
Many Florida policies include obligations that activate when a storm is named: hauling the vessel, moving it, or securing it in a specified way. Some reimburse part of the haul-out cost. Knowing what is required before the season starts is considerably better than reading it during a watch.
Wreck removal and fuel spill
If a vessel sinks or grounds, the owner can be legally responsible for removing it and for cleaning up any fuel discharge. These costs are separate from the value of the boat and can exceed it. Adequate limits here are frequently overlooked.
Liability and the umbrella above it
Watercraft liability protects against injury to guests or damage to other vessels and property. For the umbrella to extend over it, the boat generally has to be scheduled on the umbrella policy. An umbrella listing only the home and cars will not respond to a boating claim.
Uninsured boaters and medical payments
Boating carries no equivalent of a state minimum insurance requirement, so encountering an uninsured operator is a real possibility. Uninsured boater coverage and medical payments protect you and your passengers rather than the other party.
What we actually look at
We confirm whether the policy is agreed value and whether the stated amount still reflects the vessel. We check navigational limits against where you actually run. We read the named storm provisions so you know your obligations before a season rather than during one. We look at wreck removal and fuel spill limits. And we confirm the vessel is scheduled on your umbrella.
We also write personal watercraft and golf carts. Both are commonly assumed to fall under a homeowners policy and commonly do not, particularly once a golf cart leaves the property or a jet ski carries a guest.
How watercraft sits under an umbrella →Boat coverage, answered plainly
What are navigational limits?
Every boat policy defines where the boat is covered. Coastal cruising, inland waters, and distance offshore are all bounded, and some policies vary those limits seasonally during hurricane months. If you take the boat to the Keys, cross to the Bahamas, or run further offshore than usual, confirm it beforehand rather than afterward.
What is the difference between agreed value and actual cash value?
An agreed value policy pays the stated amount if the boat is a total loss. An actual cash value policy pays depreciated value, determined after the loss. Boats depreciate, so on an older vessel the difference between the two can be substantial.
Does my policy cover removing the boat if it sinks?
Only if wreck removal is included. If your boat sinks you may be legally responsible for removing it, and that cost is independent of the boat's value, so a vessel worth little can still generate a large removal bill. Fuel spill liability works similarly and matters in Florida's shallow, environmentally sensitive water.
Is hauling out before a storm covered?
Some policies contribute to the cost of hauling the boat out ahead of a named storm. If yours does, know the terms in advance, because the moment you need it is not the moment to be reading the policy.
More on watercraft and liability
Have the policy read before the season
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4830 W Kennedy Blvd #600
Tampa, FL 33609
(813) 925-6000
Fax (813) 499-1980
Coverage descriptions on this site are general and do not amend or alter any policy. Availability, terms, and conditions vary and are subject to underwriting approval. Refer to the policy for complete details.