While some boaters may see adding an endorsement to an existing homeowners policy as an easy and inexpensive way to insure a boat, these endorsements usually do not provide the necessary coverage. Many boats need liability and property coverage that these endorsements do not provide, such as liability coverage for boats moored in marinas or participating in fishing tournaments or sailing regattas. In addition, while homeowners policies usually predicate the boat’s “actual cash value” on market value, a stand-alone policy with an “agreed value” endorsement provides better protection. Moreover, boaters may want to consider an “extended parts replacement” endorsement and such options as emergency assistance, protection for uninsured boats, and recovery costs. Personal property coverage is also very important.
NOTE: Homeowners policy endorsements often place limits on the size and horsepower of insurable boats as well as very low limits on personal property.