Understanding Motorboat Insurance Cover and Policy Conditions

Motorboat insurance policies can differ significantly in how they treat engines, security, trailers, navigation areas, operators and claim settlements.

Understanding these conditions can help you compare policies more effectively and avoid choosing cover that does not reflect how or where you use your boat.

This guide explains the parts of a motorboat policy that often require closer attention, including engine damage, outboard security, navigation limits, surveys, agreed value and common exclusions.

For a general summary of available cover or to request a quote, visit our motorboat insurance page.

Inboard and outboard engines

Insurers will normally ask whether your motorboat has an inboard or outboard engine.

The type, age, horsepower and value of the engine can affect the policy terms, premium and security requirements.

Inboard engines

An inboard engine is installed inside the boat’s hull.

Inboard-powered craft can include:

·      Motor cruisers

·      Sports cruisers

·      Cabin boats

·      Fishing boats

·      Larger leisure motorboats

The insurer may ask for:

·      The engine make and model

·      Engine age

·      Horsepower

·      Fuel type

·      Number of engines

·      Maximum designed speed

·      Maintenance history

·      Details of modifications

Damage to an inboard engine may be covered when it results from an insured event. Standard policies do not normally cover an engine simply because it has broken down or deteriorated over time.

Outboard engines

An outboard engine is mounted externally, normally at the stern of the boat.

Outboard motors can be attractive to thieves because they can sometimes be removed and resold relatively easily.

For this reason, insurers may impose specific conditions relating to:

·      Approved outboard-motor locks

·      Secondary security devices

·      Removal of smaller portable engines

·      Locked indoor storage

·      Trackers or immobilisers

·      Engine serial numbers

·      Proof of purchase

·      Photographs of the engine

The requirements can vary according to the engine’s size, value and portability.

Check the security conditions carefully before leaving the motorboat unattended.

Insured engine damage and mechanical breakdown

A motorboat policy may cover engine damage when it is caused by an insured event.

Examples can include:

·      Fire

·      Theft

·      Collision

·      Impact

·      Flooding following an insured incident

·      Accidental damage

This is different from mechanical or electrical breakdown.

Standard motorboat insurance does not normally cover:

·      Mechanical breakdown

·      Electrical failure

·      Wear and tear

·      Corrosion

·      Gradual deterioration

·      Defective parts

·      Lack of servicing

·      Poor maintenance

·      Damage caused by incorrect fuel

·      Damage resulting from an existing fault

Some insurers may offer additional machinery-damage cover.

Where this is available, check whether it applies to:

·      The engine

·      Gearboxes

·      Drives

·      Cooling systems

·      Electrical equipment

·      Fuel systems

·      Older machinery

Additional excesses, age limits and exclusions may apply.

Outboard theft and security conditions

Security requirements in a motorboat policy are conditions of cover rather than general recommendations.

Depending on the insurer, you may be required to use:

·      An approved outboard lock

·      A trailer hitch lock

·      A wheel clamp

·      An immobiliser

·      A tracking device

·      Locked or gated storage

·      Additional security when the boat is unattended

The policy may also specify:

·      Where keys must be stored

·      Whether a portable outboard must be removed

·      Whether the boat can be left on a trailer

·      Whether specific devices must be fitted

·      Whether evidence of installed security is required

A theft claim could be affected if the required devices or storage arrangements were not in place.

Keep:

·      Purchase receipts

·      Photographs

·      Hull identification details

·      Engine serial numbers

·      Registration documents

·      Security-device receipts

·      Installation certificates

For practical advice about protecting boats, outboards and trailers, read our boat security and theft-prevention guide.

Trailer and road-transit cover

Many motorboats are stored or transported on trailers.

Trailer and transit cover varies between policies.

Depending on the insurer, a policy may cover:

·      Accidental damage during road transit

·      Theft of the motorboat from the trailer

·      Theft of the trailer

·      Damage while loading or unloading

·      Launching and recovery

·      Storage while the boat is on the trailer

·      European road transit

Check whether the trailer is:

·      Included within the boat’s insured value

·      Covered under a separate limit

·      Listed separately on the policy

·      Available only as an optional benefit

You should also check:

·      The maximum trailer value

·      Security requirements

·      Whether cover applies when detached from the towing vehicle

·      Whether launching damage is included

·      Whether recovery costs are covered

·      Whether overseas journeys are permitted

The towing vehicle’s motor insurance will not normally cover damage to the motorboat itself.

The trailer must also be suitable, maintained, roadworthy and secured in accordance with the policy terms.

Mooring and storage conditions

Where the motorboat is normally kept is an important part of the insurance risk.

The insurer may ask whether the boat is:

·      Kept in a marina

·      Kept in a harbour

·      Kept on a swinging mooring

·      Kept on a fore-and-aft mooring

·      Stored on a trailer

·      Stored in a locked compound

·      Kept on a driveway

·      Stored ashore during winter

·      Left in the water throughout the year

The insurer may also consider:

·      Flood exposure

·      Storm exposure

·      Tidal conditions

·      Mooring maintenance

·      Site security

·      Frequency of inspections

·      Winterisation

·      Lifting arrangements

Tell the insurer if the boat’s normal mooring or storage location changes.

Moving the boat to another marina, mooring or storage site without informing the insurer could affect the policy terms or a future claim.

Laid-up periods and winter storage

Some motorboat policies include a defined laid-up period.

During this period, the boat may be required to remain:

·      Ashore

·      At a specified location

·      Out of use

·      Properly winterised

·      Securely stored

Different excesses or restrictions may apply during the laid-up period.

Damage caused by poor winterisation, gradual deterioration or lack of maintenance may not be covered.

Check whether the policy requires:

·      The engine to be winterised

·      Water systems to be drained

·      Batteries to be disconnected

·      Valuables to be removed

·      The boat to be inspected regularly

·      Covers and moorings to be checked

·      Specific storage arrangements

Keep records of servicing, winterisation and inspections.

Navigation and cruising limits

Navigation limits define the geographical area in which the motorboat is insured.

A policy may cover:

·      Inland waters only

·      Rivers and canals

·      Lakes and reservoirs

·      UK coastal waters

·      A specified distance offshore

·      Cross-Channel journeys

·      European coastal waters

·      Named countries or sea areas

The policy may also include:

·      Seasonal restrictions

·      Offshore distance limits

·      Weather-related conditions

·      Requirements for longer passages

·      Restrictions on overnigh journeys

·      Restrictions on single-handed operation

Using the boat outside the agreed navigation limits without permission could affect the cover.

Before making a longer journey

Before taking the boat on a longer trip, check:

·      Whether the destination is within the policy limits

·      Whether Channel crossings are included

·      Whether European waters are covered

·      Whether additional permission is required

·      Whether seasonal restrictions apply

·      Whether extra safety equipment is required

·      Whether the operator meets the experience requirements

·      Whether overnight passages are permitted

·      Whether single-handed use is covered

Contact the insurer before travelling if anything is unclear.

Water-skiing, wakeboarding and towing

Motorboats are often used for towing activities such as:

·      Water-skiing

·      Wakeboarding

·      Kneeboarding

·      Towing inflatables

·      Towing another boat

These activities may not be covered automatically.

Where cover is available, conditions may apply to:

·      The experience of the driver

·      The use of a competent observer

·      The number of people onboard

·      Safety equipment

·      The geographical area

·      Third-party liability limits

·      Recreational versus commercial use

Competition, tuition and commercial activity may be excluded.

Tell the insurer about any towing activities before purchasing the policy.

High-speed and high-performance motorboats

Higher-powered or faster motorboats may require specialist underwriting.

The insurer may consider:

·      Maximum designed speed

·      Engine horsepower

·      Number of engines

·      Hull design

·      Boat length

·      Operator experience

·      Qualifications

·      Claims history

·      Mooring arrangements

·      Cruising area

A high-performance motorboat may be subject to:

·      A higher excess

·      Named operators

·      Minimum experience requirements

·      Restricted navigation limits

·      Additional security conditions

·      A marine survey

·      Specialist policy wording

Always provide accurate information about the boat’s speed, engines and performance.

Racing and competitive use

Standard leisure policies often exclude:

·      Racing

·      Speed trials

·      Timed events

·      Competitive events

·      Practice for competition

Specialist cover may be available, but it usually needs to be agreed before the activity takes place.

Tell the insurer if the motorboat will be used for racing or any organised competitive event.

Commercial and charter use

A standard leisure policy may not cover:

·      Passenger hire

·      Charter

·      Tuition

·      Paid excursions

·      Deliveries

·      Commercial fishing

·      Business entertainment

·      Hire and reward

Commercial use normally requires specialist insurance.

Using a leisure policy for an undeclared commercial activity could invalidate the cover.

Who can operate the motorboat?

Policies differ in who they allow to operate the boat.

A policy may cover:

·      The policyholder only

·      Named operators

·      Family members

·      Other people using the boat with permission

Restrictions may apply according to:

·      Age

·      Experience

·      Qualifications

·      Claims history

·      Maximum boat speed

·      Navigation area

Do not assume that anyone with your permission is automatically covered.

Check the permitted-operator wording before allowing another person to use the boat.

Boating experience and qualifications

Some insurers may ask about boating experience and relevant qualifications.

These may include recognised training in:

·      Powerboat handling

·      Navigation

·      Coastal cruising

·      Marine radio operation

·      Safety procedures

A qualification does not guarantee a lower premium, but it may help the insurer assess the operator’s experience.

Higher-performance and offshore boats may be subject to stricter requirements.

Agreed value and market value

The basis used to settle a total-loss claim can be an important difference between policies.

Agreed-value cover

With agreed-value cover, the insurer agrees the value of the boat when the policy begins.

If the boat is later declared a total loss, the agreed amount may form the basis of the settlement, subject to the policy terms.

The insurer may request:

·      A purchase invoice

·      A professional valuation

·      Recent photographs

·      A marine survey

·      Evidence of improvements

·      Receipts for major equipment

Review the agreed value at renewal and after making substantial improvements.

Market-value cover

A market-value policy usually settles a total-loss claim according to the boat’s value immediately before the incident.

This may take account of:

·      Age

·      Condition

·      Depreciation

·      Equipment

·      Maintenance

·      Previous damage

·      Comparable boats for sale

The settlement may therefore be different from the original purchase price.

Underinsurance

Underinsurance occurs when the insured value is lower than the boat’s true value.

This could affect the amount paid following a claim.

Review the insured value after:

·      Replacing the engine

·      Installing major new equipment

·      Refitting the interior

·      Completing structural work

·      Making substantial improvements

·      Significant changes in market value

Tell the insurer about material changes and keep receipts or valuations.

Marine surveys and valuations

An insurer may require a marine survey before offering cover.

A survey is more likely to be requested when the motorboat is:

·      Older

·      High value

·      Unusually constructed

·      Home-built

·      Extensively modified

·      In poor condition

·      New to the insurer

A marine survey may assess:

·      The hull

·      Structural condition

·      Machinery

·      Fuel systems

·      Electrical systems

·      Steering

·      Sea valves

·      Safety equipment

·      General maintenance

The insurer may require repairs or recommendations to be completed before providing full cover.

Survey versus engine inspection

A marine survey is not necessarily the same as an engine inspection.

A general survey may not include a complete internal assessment of the engine.

For an older or higher-value boat, the insurer may request:

·      A hull survey

·      An engine inspection

·      A valuation

·      An electrical inspection

Ask the insurer exactly what type of report is required.

A survey requested for insurance purposes should not automatically be treated as a complete pre-purchase inspection.

Anyone considering buying a used motorboat should discuss the appropriate survey with a qualified marine surveyor. Our guide to buying your first motorboat covers other matters to consider before completing a purchase.

Salvage and wreck-removal cover

Following a serious incident, the motorboat may need to be recovered, salvaged or removed.

These costs can be substantial, particularly if the boat:

·      Sinks

·      Grounds

·      Blocks a waterway

·      Presents a pollution risk

·      Must be recovered from a difficult location

Check whether salvage and wreck-removal costs are:

·      Included within the boat’s insured value

·      Paid in addition to the insured value

·      Subject to a separate limit

·      Included within the liability limit

This can make a significant difference following a major loss.

Policy excesses

The excess is the amount you must contribute towards a claim.

A policy may include:

·      A compulsory excess

·      A voluntary excess

·      A separate theft excess

·      A machinery excess

·      A storm-damage excess

Choosing a higher voluntary excess may reduce the premium, but it increases the amount you must pay following a claim.

Check how multiple excesses are applied and make sure the total amount is affordable.

For more information about the factors that affect premiums, read our guide to the cost of boat insurance.

Common motorboat policy exclusions

Exclusions differ between insurers, but common examples can include:

·      Wear and tear

·      Gradual deterioration

·      Corrosion

·      Electrolysis

·      Osmosis

·      Mechanical breakdown

·      Electrical breakdown

·      Poor maintenance

·      Defective design

·      Defective construction

·      Existing damage

·      Undeclared modifications

·      Racing

·      Speed testing

·      Commercial or charter use

·      Use outside navigation limits

·      Theft where security conditions were not followed

·      Damage caused by an unauthorised operator

·      Loss while the operator is under the influence of alcohol or drugs

Do not rely on a cover summary alone. Read the full policy wording and schedule.

Wear, maintenance and gradual deterioration

Insurance is generally intended to cover sudden insured incidents rather than routine maintenance.

Wear and gradual deterioration can result from:

·      Age

·      Repeated use

·      Weather exposure

·      Salt water

·      Corrosion

·      Lack of maintenance

The policy may require the motorboat to be kept in a seaworthy and properly maintained condition.

This may include:

·      Regular engine servicing

·      Hull inspections

·      Mooring checks

·      Winterisation

·      Replacing worn equipment

·      Maintaining safety systems

·      Following manufacturer recommendations

Keep service records, receipts and inspection reports.

For a broader explanation of maintenance, engine, electrical and weather-related problems, see our guide to the most common issues for boat owners.

Personal belongings and equipment

Some policies can cover personal belongings and boating equipment.

This may include:

·      Navigation equipment

·      Safety equipment

·      Clothing

·      Portable electronics

·      Fishing equipment

·      Tools

·      Mooring equipment

Limits and exclusions may apply, and some items may need to be listed separately.

Check whether belongings are covered:

·      While onboard

·      During transit

·      While stored ashore

·      When left unattended

·      Outside the UK

Cash, jewellery, mobile phones and other valuables may be excluded or subject to lower limits.

Personal accident cover

Personal accident cover may provide a fixed benefit if an insured person suffers a serious injury or dies following an accident involving the boat.

This is different from third-party liability cover.

Check:

·      Who is insured

·      What injuries are covered

·      The benefit limits

·      Age restrictions

·      Activity exclusions

·      Whether towing activities are included

Personal accident cover may be included or offered as an optional benefit.

Emergency assistance

Some insurers provide emergency assistance or access to a helpline.

This may include support following:

·      Breakdown

·      Grounding

·      Collision

·      Fire

·      Loss of steering

·      Fuel problems

·      Electrical failure

Do not assume that all towing, recovery or breakdown costs are covered.

Check:

·      The geographical area

·      Maximum call-out limits

·      Towing restrictions

·      Excluded causes

·      Whether offshore assistance is available

·      Whether separate membership is required

Changes that should be reported

Tell the insurer if there is a material change to the risk.

This could include:

·      Fitting a new engine

·      Increasing the horsepower

·      Changing the mooring

·      Changing the storage location

·      Increasing the boat’s value

·      Making major modifications

·      Adding a new operator

·      Beginning commercial use

·      Entering races or competitions

·      Extending the navigation area

·      Taking the boat to Europe

·      Starting water-skiing or towing activities

Do not wait until a claim to disclose a significant change.

Making a motorboat insurance claim

If an incident occurs, take reasonable steps to prevent further loss or damage without putting anyone in danger.

Depending on the circumstances, you may need to:

·      Contact the emergency services

·      Make sure everyone is safe

·      Prevent further damage where possible

·      Notify the harbour or navigation authority

·      Report theft or vandalism to the police

·      Obtain a crime reference number

·      Take photographs

·      Collect witness details

·      Retain damaged items

·      Contact the insurer promptly

·      Avoid admitting liability

Follow the insurer’s claims instructions.

Do not arrange major repairs without approval unless emergency action is necessary to prevent further damage.

General preparation and safe-operation advice can be found in our 10-step boat safety checklist.

Evidence that may support a claim

The insurer may ask for:

·      Photographs

·      Purchase invoices

·      Repair estimates

·      Survey reports

·      Maintenance records

·      Engine service records

·      Police reports

·      Witness statements

·      Marina reports

·      Weather evidence

·      Proof of ownership

·      Security-device evidence

Good record-keeping can make the claims process easier.

Technical motorboat insurance FAQs

Does motorboat insurance cover engine failure?

Standard policies do not normally cover mechanical or electrical breakdown.

Engine damage may be covered when it results from an insured event, such as fire, theft, collision or accidental damage.

What is the difference between insured engine damage and mechanical breakdown?

Insured damage is normally caused by a sudden event covered by the policy.

Mechanical breakdown usually refers to an internal failure, defective part, wear or deterioration. This is commonly excluded unless additional machinery cover has been arranged.

What are navigation limits?

Navigation limits define the geographical area in which the boat is insured.

They may restrict offshore distances, countries, sea areas, seasons or particular types of journey.

Is agreed value different from market value?

Yes.

Agreed value is set with the insurer when the policy begins. Market value is based on what the boat was worth immediately before the loss.

The settlement basis will depend on the policy wording.

When might an insurer require a marine survey?

A survey may be required for an older, higher-value, modified, home-built or unusually constructed boat.

The insurer may also request a survey if there are concerns about condition or maintenance.

Are salvage costs included in the insured value?

This varies between policies.

Salvage and wreck-removal costs may be included within the insured value, paid in addition to it or subject to a separate limit.

Can changing the engine affect the insurance?

Yes.

Anew or more powerful engine can change the boat’s value, speed and risk. Tell the insurer before or as soon as the engine is changed.

Can changing the mooring affect the policy?

Yes.

A different marina, harbour, mooring or storage location may have a different theft, storm or flood risk. The insurer should be told about the change.

Can security conditions affect a theft claim?

Yes.

A theft claim may be affected if the required locks, storage arrangements orother security conditions were not in place.

Related guides

You may also find these guides useful:

·      Buying your first motorboat

·      Boat security and theft prevention

·      Guide to the cost of boat insurance

·      Common issues for boat owners

·      10-step boat safety checklist

·      Guide to different types of boat

Check the policy details before buying

Motorboat policies can differ in their treatment of engines, trailers, security, operators, navigation areas, surveys and claim settlements.

Read the policy wording and schedule carefully, and make sure the cover reflects how and where the boat will be used.

When you are ready, you can compare motorboat insurance quotes.

Cover is subject to insurer terms, conditions, limits and exclusions.

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