Does Boat Insurance Cover Sinking?

Does Boat Insurance Cover Sinking

Indeed, most boat insurance policies will cover sinking. For various reasons, including when you are operating it or even when they are securely anchored at a dock or marina, boats can occasionally sink. Your boat insurance should generally cover a designated risk, and your policy may also cover some of the costs of removal and salvage. Risks typically insured include vandalism, theft, storms, and fire. So long as you have a complete or comprehensive boat insurance policy, your provider should cover your boat.

sailboats with pelican sails

How Is Sinking Covered By Boat Insurance? The Various Types Of Charges

There are numerous ways to pay the expenses associated with sinking through insurance.

The cheapest alternative is to insure your yacht for its real cash value. The amount paid to acquire your vessel at fair market value represents the vessel’s actual cash value. Depreciation is not considered by true cash value, so as your boat ages, your coverage will steadily diminish.

Another option is to insure your boat for the hull value, typically a predetermined or agreed-upon sum. Regardless of how old the ship was when the damage occurred, you and your repair provider agree on a price, and your insurance company will reimburse you for it if your boat sinks. A prevalent sort of Insurance, agreed-upon value coverage is often more expensive than actual cash value insurance.

Exclusions To Consider

Exclusions Based On Location

Most insurance plans have a predetermined cruising range. If you move your boat outside the designated waters with supplementary coverage, they will only pay for your sinking.

Seasonal Exclusions

If you maintain your boat in an area with seasonal sailing, there may be specific limitations on when the boat may be in or out of the water. Location and weather could be factors in exclusions from the calendar.

Acts Of Terrorism And War

Taking your boat into a dangerous location or a war zone is typically not insured.

Remember that some exclusions are more critical than others, so even if your boat sinks despite meeting some requirements but not all, you might still be protected.

Boat Insurance Types

Liability insurance covers the boat owner in case their vessel causes damage to other boats or individuals on land. It is the most affordable sort of Insurance because it doesn’t cover your boat. It’s just Insurance to pay for any harm you might cause to other people.

Hull Insurance: This policy will pay you back if your boat is lost. Obtaining hull insurance for smaller, older boats may be difficult, impossible, and prohibitively expensive.

Recovery and Salvage After Sinking

For every foot of boat length, salvage, refloating, and towing can cost hundreds of dollars. Liability insurance frequently covers the “lifting, removal, or destruction of a watercraft’s wreckage.” It may also cover clearing up an oil or gasoline spill.


Be sure your boat insurance is appropriate to protect you and your boat in the unfortunate case of an accident. You need a skilled group of agents for this. To get started on your personalized coverage, get in touch with the Pelican Insurance Agency team right away! We are the experts in boat insurance, and we’d always love to help you find the right plan.