Boat Insurance - The ultimate guide to picking the right Boat Insurance Policy

May 11, 2023

Boating is one of the most popular pastimes in Florida. With its picturesque coastline, crystal-clear waters, and perfect weather, it's no surprise that boating enthusiasts flock to this state. However, before you take your boat out on the water, it's crucial to have boat insurance. In this article, we'll provide an overview of boat insurance in Florida, explain why it's important, and discuss what to look for in a policy. Boost your knowledge today!


Boat insurance is essential for any boat owner in Florida, regardless of the type or size of the boat. Even if you have more than 20 years of on-the-water experience or just own a small 11 ft motorboat, you will never be immune to accidents...

With this Boat Insurance Guide, you can set sail with peace of mind and enjoy the beautiful waters of Florida while knowing you're protected against any potential risks.

Why is Boat Insurance important?

Even though Boat Insurance sometimes feels like a burden, it's a crucial part of staying safe on the water. In 2021, more than 2,700 people were involved in a boating accident in Florida. Taking a closer look at the boating accident stats for 2021, it turns out that a whopping 62% of the reported accidents happened in just ten counties in Florida. Crazy, right? This includes Miami-Dade, Monroe, and Palm Beach as the top 3.

If you happen to be part of an accident, boat insurance will be your best friend. It protects you from financial trouble and lets you focus on more important things when accidents strike.

The benefits of having the right Boat Insurance Policy

One of the greatest benefits of having the right Boat Insurance Policy is Peace of mind… Peace of mind knowing that you're protected financially in case of an accident.

Accidents on the water can be costly and can happen to anyone. You may collide with another boat, hit a submerged object, or even run aground. Any of these accidents can result in significant damage to your boat, and without the right Boat Insurance Policy, you could be forced to pay for the repairs out of pocket. In some cases, the damage might be so severe that your boat could be completely totalled, which can be a tough financial blow.

But the damage to your own boat is not all you should worry about… If you happen to be involved in an accident on the water, you could end up being held responsible for any injuries or property damage to others' boats and property. It's not enough to only consider yourself and your boat — you have to be covered from any angle in case you're sued as a result of the accident. You might have an 11 ft boat, but if you crash into your neighbour's 70 ft yacht, the story will not end happily without the proper insurance.

Let's dive into boat insurance basics 101!

Boat Insurance Basics. What is Boat Insurance?

So, what exactly is boat insurance? Simply put, it's a type of insurance that covers boats and other watercraft against different kinds of risks, including theft, damage, accidents, and liability. Just like car insurance, boat insurance can come in various forms, and it's essential to understand the fundamentals of boat insurance to ensure that you have the right coverage for your needs.

Understanding the fundamentals of Boat Insurance

Understanding the basics of boat insurance can help you navigate the waters with confidence. Below are the eight most important terms and concepts to know:

Coverage: This is the most important term for you to be comfortable with. Coverage is what the insurance policy will protect you against. For example, if your boat gets damaged or stolen or if you cause an accident that damages someone else's property. Later in the article, we will mention the types of coverage you absolutely have to know about as a boat owner!

Premium: This is how much you'll pay for the insurance policy. The cost can vary depending on factors like the type of boat you have and how much coverage you want.

Deductible: This is the amount you'll have to pay out of pocket before the insurance kicks in to cover any damages.

Limits: The maximum amount of coverage that the boat insurance policy will provide for various types of losses and damages.

Exclusions: The specific types of losses and damages not covered by the boat insurance policy, such as normal wear and tear, intentional damage, or damage caused by illegal activities.

Navigation area: The geographical area where the boat can be operated while still covered by the boat insurance policy.

Salvage and wreck removal: The costs associated with removing a damaged or wrecked boat from the water, which the boat insurance policy may cover.

Agreed value vs actual cash value: Two different methods of determining the value of the boat for insurance purposes, which can affect the cost of the boat insurance policy and the amount of coverage provided. If you choose the Agreed value, you will be insured for that amount you and the insurance company agree upon. The Actual cash value is a bit different. In this method, you also consider depreciation, which means the value of your boat would decrease as years go by.

Keeping the eight factors above in mind, you now know how to read and understand a policy! But what's the right policy for you? Let's dive into the best strategies for picking the right policy.

An Essential Boat Insurance Strategy

Here are five questions you should answer before making a final decision about what Boat Insurance Policy to choose:

How will I use my boat? The way you use your boat affects the type of coverage you need. For example, if you use your boat for fishing, water skiing, or other high-risk activities, you may need more coverage than if you only use your boat for leisurely cruises.

Also, will you only use the boat yourself, or will you be renting out the boat to others? If the case is the latter, your insurance situation might be a different story! *Many Boat Insurance Policies don’t cover the renter in the case of an accident, and it can be tough to interpret if the policy covers or not.*

For this type of coverage, it is not a question if you want to have it. Starting January 1, 2023, The state of Florida requires all boat owners renting out their boats to obtain and carry a boat rental insurance policy which insures both the boat owner and the renter. This new law is referred to as boat The Boating Safety Act of 2022 (or SB606), and you can read more about it here. If you rent out your boats to others, you need boat rental insurance.

Fortunately, a digital-based insurance solution can simplify the boat rental and insurance process: Buoy. Buoy offers boat rental insurance that provides boat rental coverage for both the renter and the boat owner.

One of the benefits of using Buoy is that the insurance is integrated into the rental process. This means that renters can easily purchase insurance coverage through Buoy's platform when renting a boat, and boat owners can rest assured that their boat is protected. Read more about Buoy here!

What types of coverage do I want? When you have decided how you will use your boat, It's essential to consider what risks you want to be protected against.

Boat rental coverage, in case you want to rent out your boats to others. Even if you're a commercial or peer-to-peer boat owner, boat rental insurance is mandated by law. Read more about The Boating Safety Act of 2022 (or SB606) here!

Liability coverage protects you if you are responsible for an accident that causes property damage or injuries such as injuries to passengers or damage to other boats or property. If you have the right liability coverage, you are covered from any angle in case you're sued as a result of the accident.

Hull coverage covers damages to your boat and its equipment. Hull coverage is also called comprehensive and collision coverage. This is an essential coverage to consider because it (usually) covers:

- Vandalism and theft

- Hurricanes or tropical storms

- Hail

- Fire and lightning

Especially the hurricane coverage essential in a state like Florida, where hurricanes often occur.

Personal effects coverage covers your belongings on the boat, such as fishing gear, electronics, and other equipment.

Towing and assistance coverage provides assistance in case of an emergency while on the water.

Boat insurance can also provide coverage for passengers on your boat in case they are injured or require medical attention while on board.

Before choosing what coverage you want, it is important to consider the type of boat you have. The type of boat you own can affect the type of insurance coverage you need. For example, a smaller, less expensive boat may require less coverage than a larger, more expensive yacht. Someone with a small and cheap boat might even choose liability-only coverage, which means you are covered if you damage someone else's boat, but not if you damage your own.

Where will I be boating? The location where you will be boating can also affect the type of coverage you need. For example, if you are boating in open water or areas with high traffic, you may need more coverage than if you only boat in calm, protected areas. If the area is more exposed to hurricanes and tropical storms, you need to focus more on the hull coverage / comprehensive and collision coverage.

What is my budget? Boat insurance premiums can vary depending on the type of coverage you need and the value of your boat. Therefore, it's essential to consider your budget when choosing a policy and to make sure you can afford the premiums and any deductibles that may apply.

a. Premiums: The cost of boat insurance can vary widely depending on the type and size of the boat, as well as the coverage amount. Shop around and get quotes from several insurance providers to find the best price.

b. Deductible: Make sure the deductible is reasonable and affordable for you. You don't want to be surprised by the deductible when accidents happen!

What level of customer service do I want? It's also important to consider the level of customer service provided by the insurance company. For example, do they offer 24/7 customer support and claims handling? Do they have a good reputation for customer service and claims processing? These factors can be vital if you need to file a claim or need help.

When you have answered the five questions above, you're ready to pick the right boat insurance policy for you! But before your do, it's important to shop around for different boat insurance policies and compare quotes to find the best coverage options and rates that fit your budget. Finally, regularly reviewing and updating your boat insurance policy can help ensure that your coverage is up-to-date and reflects any changes in your boat or water usage.


So there you have it! If you're a boat owner in Florida, boat insurance is a must-have to ensure that you're protected against potential risks on the water. Accidents can happen to anyone, regardless of how experienced or careful you are, and the cost of damages can add up quickly without proper coverage. Plus, if you're held responsible for injuring someone or damaging their property, the expenses can be astronomical.

But don't worry! Understanding the basics of boat insurance is easy and can provide you with peace of mind and financial security. We hope this article has helped you feel more confident about choosing the right boat insurance policy for your needs.

Remember to consider factors such as coverage, premiums, deductibles, limits, exclusions, navigation areas, salvage and wreck removal, and agreed value vs actual cash value, and ask yourself these questions:

1. How will I use my boat? Will I be renting it out to others?
2. What types of coverage do I want?
3. Where will I be boating?
4. What is my budget?
5. What level of customer service do I want?

And don't forget to shop around and compare policies from different providers to find the best coverage and price for you. So, set sail with confidence, enjoy the beautiful waters of Florida, and rest easy knowing that you and your boat are protected!

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