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Texas Department of Insurance
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Do you need boat insurance?

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If your summer plans include boating, make sure you know what’s covered and what isn’t.
A boat to fish and ski tied to a dock. The owner is thinking about buying boat insurance for liability coverage.

  1. Homeowners coverage

    Most homeowners insurance policies will cover damage to your boat, but only for a limited dollar amount. These policies don’t provide liability coverage. You will need a separate boat policy to cover a more expensive boat, provide for medical payments, or pay for damage or injuries to others.

  2. Types of boat polices

    There are three kinds of boat polices:

    • Replacement cost: Pays to repair or replace your boat.
    • Actual cash value: Pays to repair or replace your boat minus depreciation. For example, a new boat in 2010 might cost $40,000, but today it’s worth $25,000. An actual cash value policy would pay up to $25,000 to repair or replace this boat.
    • Agreed amount value: Pays to repair or replace your boat up to a set value in your policy.

  3. Understand your policy

    • A layup provision suspends coverage during the months when the boat is not in use.
    • There may be limits on your policy for ocean use. Talk to your agent to make sure your coverage fits your needs.
    • Most policies have restrictions on underage drivers.

Many insurance companies that sell homeowners insurance can also sell you a policy for your boat. Be sure to ask your agent about options. There are also insurance companies that specialize in boat policies.

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Questions? Call us at 800-252-3439.

Last updated: 7/21/2025