Watercraft Insurance and their types

| By Webner

What is Watercraft Insurance?

Watercraft insurance mainly contained three types of insurance services personal watercraft insurance, boat insurance, and yacht insurance. If there is any damage that occurred in the water vehicles having a horsepower of at least 25 miles per hour, then this insurance will protect the insured against damages according to the policy term and conditions Watercraft insurance mainly covers any physical loss or damage to the boat, theft of the boat and so on.


Watercraft insurance works like other insurance services, any person (insured) has to pay a series of insurance premiums for his/her boat coverages. The premium will depend on there other factors like the use of craft, size of the craft, and its age. The track record of previous claims is also considered during the time of policy to set premiums.

Types (subsets) of Watercraft insurance:

Boat Insurance: Boat insurance is basically used to protect the boats of the insured from owning and operating risks. This mainly offers protection against liability lawsuits and exiting medical payments. So we can say that any craft which is under 190 -197 feet long is called a boat so above this we can consider those as ships. Some boats with less than 25 miles per hour horsepower can be covered under the homeowner’s and renter’s policy.


So while we talk about the boat insurance, this mainly covers the theft, any physical damage to the boat, any damage caused by a windstorm, vandalism, and lightning or medical payments to the injured people, and so on.

Yacht Insurance: This insurance mainly provides coverages for large expensive boats that are used for racing and sailing (sailing vessels). This includes liability coverages for personal property damage on vessels or bodily injury damage. The length of the yacht could vary from 27 to 30 feet.


Yacht insurance doesn’t contain coverages for, marine life, animal damage, manufacturer defects, design defects, wear and tear, denting, scratching, and so on

There are two sub-types of yacht insurance:

Hull Insurance:
This type of insurance includes the agreed amount of hull coverages for all existing risks that are considered from the direct damages. This insurance mainly covers permanently attached machinery and other types of equipment. The hull insurance also is split into two types: brown water hull and blue water hull.

  • Brown-water hull: This usually covers the boats that are traveling on the inland water like rivers, water close to the shore, etc.
  • Blue-water hull: This covers the boats or crafts that are traveling on large bodies of water like oceans and seas.

Protection and Indemnity Insurance:
This insurance term is also known as P&I insurance. The P&I mainly provides coverages for all open-ended risks that most insurers are unwilling to insure. This insurance can also covers third-party risks for damage to ships/crafts along with war risks and risks due to environmental damages such as oil spills and pollution.

Personal Watercraft Insurance:
This type of insurance mainly covers stimulating vehicles like Sea-Doos, Yamaha wave runners, and jet Skis. These types of vehicles mainly have horsepower from 60 mph to 310 mph. So these cannot be covered under the homeowner insurance policy.
Watercraft Insurance
Personal watercraft insurance covers property damage to another watercraft, Bodily injury to another person, towing of accident, theft, and so on.

Leave a Reply

Your email address will not be published. Required fields are marked *