Lobster fishing boats in Maine,

Do I Need Boat Insurance?

There are only two states that currently require boating insurance— Arkansas and Utah. But just because California officials haven’t made it a legal necessity doesn’t mean you don’t need it. To the contrary, most marinas require boat owners to purchase a liability policy. And don’t forget about the bank, if you took out a loan. They’ll definitely want to protect their interests. So, read on for a quick summary of boat insurance basics.

But Won’t My Homeowner’s Policy Cover it?

The short answer to this is simply, “No.” If the bank or harbor require you to stay up to date with boat insurance, a homeowner policy won’t be sufficient. They just don’t have provisions tailored to the types of catastrophe that can occur out on the water. And homeowner’s policies that do include boats will be limited to vessels of a certain size or value.

Boat Insurance Basics

Boat insurance coverage considers the unique needs of boat owners. The most common policies are termed “All Risk” policies, and they cover a wide range of unforeseen hazards. For example, fire, theft, sinking, and vandalism.

There are also options to insure your boat for no more than its current market value. This is sometimes called its “Actual Cash Value.” Or, for an agreed-upon value, or “Stated Value.”


The more your boat is worth, the more important it is for you to have boat insurance that protects you from liability and financial loss. However, even if your boat isn’t monetarily valuable, it’s still worth insuring due to the slight chance of collisions with other boats, resulting in injury, or legal fees. Even if you’re responsible, it’s impossible to account for someone else’s negligence.

If you’re wondering how much it would cost to insure your boat, get in touch with us for a free quote. Contact our office at (925) 447-1744. Happy sailing!