Insurance for Owned or Rented Watercraft

Will your home insurance policy cover damage to personal watercraft? How about a liability claim for an injury or property damage resulting from its use?

Losses to some types of watercraft, such as a canoe or kayak, are normally covered by homeowners insurance. Other types of personal watercraft may be covered only on a limited basis (for example, a $1,500 maximum) or excluded altogether.

If you are at fault for harm to another person or their property, you may face a liability claim. Liability claims resulting from the use of some types of watercraft that are not powered by an engine or wind (such as a canoe or kayak) are often covered. Coverage for liability caused by other types of personal watercraft is normally based on two factors: ownership status and power source.

For example, claims resulting from the use of a watercraft you own with an inboard motor, such as a jet ski, are likely not covered. If the claim results from the use of a rented watercraft with an inboard motor, coverage may be provided based on specified horsepower (for example, covered only if 50 horsepower or less). However, if a personal watercraft with an inboard motor is borrowed, some home insurance policies afford coverage regardless of power source.

The good news is there are specific adjustments you can make to a homeowners policy to cover the use of watercraft. Contact our professionals to discover your options.