Boat insurance protects your investment and ensures peace of mind while on the water. However, it’s crucial to understand that not all situations and damages are covered. By understanding potential gaps in your coverage, you can address these issues in advance and avoid being underinsured.
Common Boat Insurance Exclusions 
Consider the following common exclusions to help you avoid unforeseen out-of-pocket losses and expenses:
- Wear and tear—Insurance policies generally do not cover damage from normal wear and tear. This includes the gradual deterioration of your boat’s hull, engine and other components due to regular use and exposure to the elements.
- Lack of maintenance—If your boat suffers damage due to poor maintenance or neglect, your insurance is unlikely to cover the repairs. Regular upkeep is your responsibility, and insurers expect you to take reasonable care of your vessel.
- Mechanical breakdowns—Mechanical failures, such as engine breakdowns, are often excluded from coverage. While some policies may offer optional mechanical breakdown coverage, it’s typically not included in standard plans.
- Marine life—Damage caused by marine life, such as barnacles, algae or other organisms attaching to your boat, is usually not covered. This type of damage is considered a maintenance issue rather than an insurable event.
- Risky activities—If you use your boat for racing or other high-risk activities, any resulting damage or liability may not be covered. Some insurers offer special policies for these activities, but they come with higher premiums and specific conditions.
- Undisclosed modifications—Modifying your boat without informing your insurer can void your coverage. Always notify your insurance provider about any changes to ensure they are covered under your policy.
Get the Right Coverage
Contact Dixon Blackwood Insurance Agency today to learn more about coverage options for your watercraft or to compare personalized boat insurance quotes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.