Boat Insurance Coverages
The simple truth: coverage isn’t the same with all insurers
We offer many of the same standard coverages other insurers do. But we do more than meet checklist requirements. We offer more unique coverages—many of which don’t cost any extra.
Boat insurance coverages that are automatically included
No depreciation on repairs
Add comprehensive and collision, and we’ll always pay what it costs to return your watercraft to its pre-accident condition or better. For example, let’s say that you hit a submerged object, damaging your 10-year old motor. It may only be valued at $3,000 but costs $8,000 to replace. If we can’t repair it, we’ll replace it. For you, that could be a real $5,000 difference.
Small accident forgiveness
We won’t increase your premium because of a claim that costs Southwest Federal Insurance Company $500 or less.
Large accident forgiveness
If you’ve been with us for at least 4 years and have not filed a claim in the last 3 years, we won’t count an accident against you at your next renewal, regardless of what it costs.
Pays the cost of cleaning up a fuel spill, even if your boat sinks.
If your boat sinks, we’ll cover the costs of removing your boat from the water (if removal is legally required).
If your trailer or tow vehicle becomes disabled, we’ll pay to tow you to the nearest repair shop. This coverage is included if you have a trailer on your policy. See how boat roadside assistance works.
Water sports coverage
Automatically included on every Southwest Federal Insurance Company watercraft policy and pays for any injuries or damages to property for which the boat owner is liable—if people are tubing, knee boarding, wake boarding, wake surfing or other similar activities. This doesn’t cover parasailing, kite boarding or other activities in which someone is pulled through the air.
Common boat insurance coverages
Bodily injury & property damage liability (BI/PD)
Pays for damages to other’s property. This includes damage to things other than watercraft and injuries to other boaters and passengers. This will also pay for legal expenses if you’re sued.
Comprehensive & collision
Pays for repairs if your boat is damaged or stolen. With comprehensive and collision, you pick what you pay out of pocket (called your deductible). For example, if you file a claim for $2,500 in damages and you have a $500 deductible, you pay $500 out of pocket. We’ll pay the rest. Plus, we’ll even include free pet injury coverage for dogs and cats with comprehensive and collision. We’ll pay up to $1,000 if your pet is injured during a covered accident (and even give you a $1,000 death benefit for your pet).
Uninsured/underinsured boater (UB/UIB)
It’s a common question: what happens if another boater who doesn’t have insurance hits your boat and injures you? Sometimes, they’ll pay for damages. But if they don’t have insurance, you may have to pay. This coverage also pays for your injuries/medical bills and lost wages if you can’t work.
You can pick a range of coverage limits to pay for your medical bills (or your passengers’) if you’re in an accident. In some states, this coverage will kick in once your health insurance limits are reached.
Add-on coverages for more protection
Total loss replacement
This coverage is available for purchase if your boat is no more than one model year old. If it is totaled within 5 model years, we’ll either buy you a new one or give you the amount that you originally paid for your totaled boat—your choice. If you’re outside the 5 model-year window, we will still give you the original purchase price of your boat. No depreciation. No estimated values. Just more cash for you.
For example, let’s say that you bought a new boat 3 years ago for $15,000, but it’s now only worth $10,000. If you have a total loss, it’s going to cost you $15,000 (or more) to buy a brand new one. So, we’ll spend the $15,000+ and not the depreciated value of $10,000. That’s a real $5,000 difference.
Sign & Glide® on-water towing
Pays for on-water towing, jump starts, soft un-groundings and fuel delivery if your boat is disabled on the water. Just call our dispatch center, and we’ll arrange for and pay the tow operator directly. You pay nothing out of pocket.
Full coverage for fishing equipment or carry-on items
You can get full replacement cost up to $10,000 for fishing equipment and up to $5,000 for personal property such as scuba gear, phones or other items that are lost or stolen.
Propulsion Plus® mechanical breakdown coverage
We’ll pay to repair or replace the lower unit of an outboard motor, or upper & lower units of an inboard/outboard motor if you have a mechanical breakdown. And yes, we’ll still cover it if it’s caused by general wear and tear.
Starts at $38/year
Trailer trip interruption
If your trailer or tow vehicle breaks down, and you’re more than 100 miles from home, we’ll reimburse you up to $500 to cover food, hotel and other transportation costs.
Costs only $10/year
This reduces your deductibles by 25% each year that you don’t have a claim. Your deductibles can go all the way down to $0. If you have a claim, your deductibles return to their original amounts at the next renewal.
Why you need a specialized boat insurance policy
You may be able to insure your boat on your homeowners policy. But homeowners typically only covers physical damage while your boat is stored on your property. You might not even get protection when you’re actually on the water. That’s why so many boaters choose Southwest Federal Insurance Company specialized policies.
With specialized boat insurance, you’ll get all the coverages listed above (or the option to select them). And if you finance your boat or dock it at a marina, you may be required to get a specialty policy.