Does Homeowners’ Insurance Cover Boats?

Does Homeowners’ Insurance Cover Boats?

Life on the water can be unpredictable, so if you own a boat, you need to insure it. 


Homeowners’ Insurance provides robust coverage for incidents involving theft, flooding, fire damage, and other damage-inducing incidents. Importantly, this doesn’t guarantee coverage for all items on your property. If you are a boat owner, we advise you to review your policy to see if your boat has the right level of coverage you desire. 

Does my Home Insurance cover my boat? 


Some Home Insurance policies may provide limited coverage for small boats, although this is quite uncommon. Check your PDS or contact your insurer to see if you have boat coverage on your Home Insurance policy. This is a rare situation, and even if you have some coverage, it will likely be for damage to the boat while it is on your property and not be covered for water-related damage. Therefore, it is best to get a separate policy for your boat. 

What does Homeowners’ Insurance cover? 


Home Insurance policies typically offer two types of coverage: 

  1. Property Damage  
  1. Personal Liability 


Property Damage 

Typically, homeowners’ policies cover damage to your property, including your home, structures (like sheds or garages), and personal property. Trucks and cars are usually not covered by homeowners’ policies, but a boat may be covered if the coverage is limited. 

Personal Liability 

This coverage offers financial protection if another person is hurt, and you are found to be responsible. This coverage should also cover the legal costs as well as any medical expenses incurred. 

How much Boat Insurance do you need?


Only you will be able to decide the amount of coverage you require. You will need to consider factors such as how often you use your boat, its value, and your budget when deciding which policy you should purchase. When deciding the amount of coverage you need, it is important to understand the differences between the types of boat insurance and their inclusions. 

For example, at Coast Insurance, we offer the following: 


Complete Boat Insurance 

Coverage for fire, theft, natural disasters, accidents, and damage to another person’s property. 

Third Party Property Only Boat Insurance 

Coverage for damage to another person’s property. 

After you have compared the different types of boat insurance and decided which one suits you best, you might need to modify your policy to meet additional requirements. You may also want to increase your coverage or insure your sailboat for racing. 

Boat Insurance: The Ins and Outs? 


Boat Insurance protects boats and other watercraft from certain dangers, but what happens if your boat is actually damaged? Yes, your property coverage could pay for the repair of your boat if it is damaged by an accident, and it could also pay to replace your boat if it has been stolen, but only Boat Insurance coverage protects your boat whether it is on water or land. 

If you are buying boat insurance, you might be able to choose between three coverage types: market value coverage, agreed value coverage, or total loss substitute if the boat is less than 12 months old. 

What is the difference between the coverage options?  When it comes time to pay for repairs, market value coverage will take depreciation into consideration. An agreed amount policy pays for repairs based on the boat’s valuation, which is what you and your insurer agree upon when you initially purchase coverage. A total loss replacement will replace your damaged vessel with one in brand new condition. Most Homeowners’ Insurers do not offer these coverage options, therefore it is crucial to have wreckage removal and fuel spill coverage in the event your boat is destroyed. 

Another important aspect of coverage is the personal accident cover which pays in the event that you are injured or worse. 

Blue Water/Globally based coverage 


You can get Marine Insurance coverage for either one-off trips or permanent vessels based in Australia or New Zealand. An itinerary detailing where you will be travelling, and the experience of your crew is necessary. If you are unsure of the detail required, you can discuss itinerary requirements with the team at Coast Insurance. 

Local insurers will not typically cover extended trips beyond Australian waters, and normal policies will not cover more than 250NM from the coast. You won’t be able to access known repairers, and it can be extremely difficult to manage claims. 

In most cases, you will need to demonstrate your experience, along with showing an itinerary proving you are actively avoiding cyclone season and pirate hot spots. 

Do you need Boat Insurance even when it’s not on the water? 


You may be contemplating if it is worth having Boat Insurance if you only use your boat for a few months each year, but your vessel will still need to protect even when it isn’t in the water. Some policies won’t cover your boat for vandalism, damage, or theft when it isn’t in the water. You should always review the PDS and speak to your insurer to discuss your options. 

Coast Insurance Can Help You Protect Your Boat 


Although you may park your car at your home, you still have a separate insurance policy, and your boat should be no different. 

Your boat is a big investment, just like your home, so you want to protect it at all times. It’s worth getting boat insurance rather than relying on the very limited coverage offered by your homeowners’ policy. Without Boat Insurance, you might not have the coverage you need for vandalism, damage, and boating accidents. 

It would be a shame to imagine a summer without the ability to enjoy the open water, and whether you own a jet ski, cruiser, or sailboat, you shouldn’t have to worry about being protected. 

Need help navigating which type of coverage is right for you and your watercraft? Get in touch with one of our specialist insurers for an obligation-free quote today. 

Looking for a Quote?

Choose the best option below to find the Market Leading Products to suit your needs

customer quote

For Boats, Personal Water Craft & Sports Craft


For Boats, Personal Water Craft & Sports Craft

Various retail and commercial products including package solutions

general enquiry

Talk to the team at Coast Insurance for more options