Boat Insurance

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Is Boat Insurance Necessary?

Boat insurance in Texas is absolutely necessary no matter where the boat is. Your boat may not sit on the water all year, but your must carry insurance for the boat in case of an emergency. You are bound by law in the state of Texas to have insurance for every watercraft you own. Your boat or Jet Ski must have an insurance policy that will provide for you in the event of a crash or loss. Boat insurance in Texas comes from the same agents who write your auto and home policies, but the policies must be specific to each craft. Coverage for your craft cannot exceed the craft’s value, and you must ask your insurance agent to advise you on the type of policy that is needed for each vehicle.

What Should I Consider when Looking for Boat Insurance?

From the marinas at Corpus Christi to the shore of Lake Texoma, boat owners are all over Texas and are faced with a variety of insurance options. There is a lot to keep in mind when looking for the right policy for your needs. Some things that you should consider are:

  • We live in Texas! Hail is always with us. Does your policy adequately cover damages as a result of hail?
  • Oh my! What about all those tornados? Do I have coverage for that?
  • Is my fishing equipment, navigation gear, etc., covered on my fast moving bass boat?
  • Are my electronics covered if there is a lightning strike?
  • If I am in the Gulf, are there navigation limits in my policy that I must be aware of?
  • Does my current homeowners policy provide any coverage for my boat?
  • Do I have to be a resident of the state in order to get coverage?
  • Do I motor in a High speed or go-fast boat that needs special underwriting?

What is Covered?

Here are some pointers from the Texas Department of Insurance:

  • Homeowner Coverage: Most homeowner’s insurance policies will cover damage to your boat, but only for a limited dollar amount. These policies don’t provide liability coverage. You will need a separate boat policy to cover a more expensive boat, provide for medical payments, or pay for damage or injuries to others.
  • Types of Boat Policies: There are three kinds of boat polices:

    1. Replacement cost: Pays to repair or replace your boat.
    2. Actual cash value: Pays to repair or replace your boat minus depreciation. For example, a new boat in 2010 might cost $40,000, but today it’s worth $25,000. An actual cash value policy would pay up to $25,000 to repair or replace this boat.
    3. Agreed amount value: Pays to repair or replace your boat up to a set value in your policy.
  • Understand Your Policy:

    1. A layup provision suspends coverage during the months when the boat is not in use.
    2. There may be limits on your policy for ocean use. Talk to your agent to make sure your coverage fits your needs.
    3. Most policies have restrictions on under-age drivers.