What does boat insurance not cover? Boat policies contain significant exclusions that limit coverage for common issues like wear and tear, theft, mold, and lack of maintenance.
Being aware of what a boat insurance policy does not cover can help make informed choices when purchasing coverage and prevent surprise out-of-pocket costs for uninsured damage.
What Boat Insurance Does Not Cover
| Type of Damage | Description |
|---|---|
| Wear and tear | Gradual deterioration from use, weathering, corrosion. Not considered an insurable event. |
| Mold | Damage from mold, mildew, fungi, etc. due to dampness. |
| Pests | Damage from marine life, insects, rodents. |
| Latent defects | Flaws in materials/workmanship including manufacturer defects. |
| Mechanical breakdown | Failure of machinery, engines, equipment. |
| Lack of maintenance | Damage due to improper upkeep by the owner. |
| Theft | Partial or full theft of boat, parts, or equipment. |
Other Common Exclusions to Note
- Gradual Deterioration – Slow damage from regular use, aging, weathering, etc. is not covered. This includes wear, corrosion, fading.
- Delamination – Separation of layers in fiberglass hulls due to moisture over time is often excluded.
- Boat Racing – Using your boat for timed racing events may void your policy or lead to denied claims.
- Unlicensed Captain – Damage while the boat is operated by an unlicensed captain may be excluded.
- Peak Speed – Exceeding the maximum speed stated in your policy can lead to denied claims.
- Navigational Limits – Operating outside your policy’s designated cruising area is generally excluded.
- Commercial Use – Using your recreational boat for charter, rentals, fishing trips, etc. voids many policies.
- Storm Damage – Damage from named storms may be excluded unless you have add-on coverage.
- Unrepaired Damage – Policies often exclude existing damage that occurred before coverage began.
FAQ
Does Boat Insurance Cover Hitting A Rock?
Based on what I found, a boat insurance policy with collision coverage would typically cover damage caused by hitting a rock, as long as the boat was being operated within the designated cruising area specified in the policy.
Does Boat Insurance Cover Lower Unit Damage?
Based my research, a boat insurance policy with comprehensive coverage would typically cover damage to the lower unit as long as it was not caused by wear and tear, lack of maintenance, or mechanical failure.
Does Boat Insurance Cover The Motor?
Based on the policies I looked at, a comprehensive boat insurance policy would typically cover damage to the boat’s motor as long as the damage was caused by a covered peril, such as a collision, fire, lightning, theft, vandalism, etc.
The Bottom Line
Reviewing your boat insurance exclusions helps avoid surprises later on. Look into add-ons like total loss replacement coverage if needed. And be diligent about maintenance and security to prevent issues the policy won’t cover. Your insurer or broker can help you choose the right boat insurance coverage.
