inLog · 2026-10-30
What is boat and yacht insurance? What does it cover and exclude?
Owning a boat or yacht is a major investment, and the sea carries very different risks from land. Collision, grounding, storm, fire, theft and damage to someone else’s vessel can each create a serious financial burden. Boat and yacht insurance (called marine hull insurance in the trade) exists to reduce that burden. This article explains what a policy covers, what it does not and what to ask before signing.
What is boat insurance?
It is a policy that protects the hull, machinery and equipment of motor yachts, sailboats, speedboats, gulets and jet skis against defined risks. The boat’s value is written as an “agreed value”, and claims are paid within that value and the policy conditions.
What does a policy usually cover?
- Hull and machinery: damage from collision, sinking, grounding, storm and fire.
- Theft of the boat, outboard engine and fixed equipment (depending on conditions).
- Third-party liability: property damage and injury your boat causes to another vessel, a pier, marina equipment or a person.
- Salvage and towing costs needed to bring the boat to safety after an incident.
- Accident cover for skipper and crew, trailer and transport cover and other extras (depending on the policy).
What is usually excluded?
Policies share some common exclusions. Wear and tear from poor maintenance, manufacturing defects, intentional damage and losses linked to drunk or unauthorised use are often excluded. Damage outside the cruising area and use not defined in the policy, such as unauthorised chartering, can also affect payment. Do not assume “everything is covered”; ask for the exclusions in writing at quote stage.
Private use or chartering?
Do you use the boat only for yourself and your family, or do you charter it out or run day trips? This changes premium and cover significantly. Private-use policies generally exclude commercial use. Chartering needs a policy written on commercial-use terms.
Why do cruising area and winter storage matter?
The policy defines which sea area the boat may sail in. Trips abroad, to the Greek islands or long passages may require extending that limit. Winter storage afloat or ashore also has separate conditions; lifting, transport and storage on land bring different risks.
Is it mandatory?
Boat insurance is generally not a legal requirement. Marinas, berth contracts and financing terms, however, often ask for a policy, and damage to a boat or to others without insurance can reach a serious amount. Check your marina contract and insurer for current requirements.
Checklist before you buy
- Is there a current survey report and valuation?
- Does the agreed value reflect the real value?
- Do cruising area, use and storage conditions match how you really use the boat?
- How large is the deductible, the part you pay in a claim?
- Does the third-party limit meet marina and berth requirements?
- Are salvage costs and outboard engine cover stated separately?
Send us your boat’s details and we will put several insurers’ quotes in one table, with cover and exclusions, and explain them plainly.
Frequently asked questions
Is there a difference between boat insurance and yacht insurance?
In the trade both are usually the same type of policy. The difference lies in length, value and use; larger yachts have more detailed survey and cover requirements.
Does boat insurance pay for storm or theft?
Storm and theft are generally covered under the policy conditions. Which events are covered is stated in the policy; ask for the exclusions in writing at quote stage.
Can a jet ski be insured too?
Yes. Policies with hull, theft and third-party liability cover can be written for jet skis and similar craft.
Is a boat survey necessary?
For valuable and older boats insurers usually ask for a current survey report. It also helps set the agreed value correctly.
Is the policy valid if someone else operates the boat when damage occurs?
The policy defines who may act as skipper. Unauthorised or unlicensed use can affect payment, so check the conditions before lending your boat.