Although many states still do not require a license to operate a recreational watercraft, don’t let that fool you into thinking insurance must not be necessary either. Not every state requires insurance, but operating a watercraft carries many of the same risks that are attendant when you operate a vehicle on the land, plus a few others.
If you have a homeowner’s policy, you may already have some coverage for your boat. For example, a standard policy typically will pay up to $1,000 for any damage to your boat sustained while it is stored at your house. And the liability coverage in a homeowner’s policy may provide limited protection if you injure others by your negligent operation of a watercraft.
But in an era when boat prices can range from that of a used car to that of a large home, you may decide you need added protection. Recreational boat insurance is similar to automobile insurance. You can purchase liability coverage and physical damage coverage. Some polices also offer medical payments, uninsured boater coverage, and legal defense coverage.