Going to rent a boat out on the lake and think homeowners liability will cover you? Maybe, but most likely no! You should buy the insurance offered at a rental unless it is a boat with less than 50hp, or a Sail boat less then 26ft. Jet skis and Hovercrafts are specifically excluded. Umbrella liability policies lists the same guidelines.

Own a boat, read on?

 However if you own a boat and have it insured, in most cases the rental boat is covered from that policy.

Coverages:

 Coverages on a boat policy are listed just like an auto policy. You have liability, uninsured/underinsured boater, medical, comprehensive, collision, and towing.  

Optional coverages:

 Personal property – for skis, life jackets, etc.

Trailer – covers the value of the trailer. Note: when pulling a trailer the liability to others comes from the auto insurance policy of the car pulling it. The damage to the trailer is picked up under trailer coverage, on a boat policy.

You can get Actual Cash Value or Agreed Amount Coverage on the boat’s value. Actual cash value pays you what the boat could be bought for in the used market. Agreed Amount pays at the stated value on the policy.  Agreed value cost more but can provide better coverage.

If you own a boat larger then 26 ft, your are probably better served by an insurance policy called a Yacht policy.

Exclusions on a boat policy:

Boating outside U.S. and Canada waters (Lakes and coastal waters).

Mold, mildew, and Fungi

Lack of reasonable care and maintenance

Racing, unless a sailboat

Ice while boat is moored or laid up afloat

Insects, animals and marine life

Policy is Void if boat is used for business or rented to others.