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Coverage by Boat Type
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Coverage Guide
Boat Insurance Coverage in Canada
Boat insurance in Canada can cover a wide range of risks, from collision and theft to liability and personal belongings on board. Whether you own a fishing boat, a cruiser or a sailboat, here are some standard coverages you can expect a boat insurance policy in Canada to provide.
Hull & Machinery
Hull & Machinery provides coverage for physical damage to your boat and its motor, boating equipment, and boating accessories like GPS, depth sounders, and many other items.
You're exploring an unfamiliar stretch of river when your boat hits a submerged rock and damages your hull and outboard motor. Hull and Machinery coverage can help cover the cost of repairs.
Third-party Liability (Protection & Indemity)
Liability insurance for your boat helps protect you financially if you cause someone’s death or injury, or cause damage to another person’s boat or property while you’re operating your boat. It’s recommended that you have $3 million or more in boat liability insurance as part of your marine insurance policy. It helps cover legal fees and medical bills, which can be expensive without boat insurance.
While docking at the marina, a wave causes your boat to drift and collide with the boat docked next to you. The owner files a claim for repairs. Third-party liability coverage helps pay for the damage to their boat.
Comprehensive/specified Perils
Comprehensive/Specified Perils coverage provides coverage for damage resulting from theft, vandalism, and even natural disasters like hail or windstorms.
You arrive at the marina to find your boat has been broken into overnight. Your onboard electronics, fishing gear, and motor have been stolen. Comprehensive coverage helps cover the cost of replacing the stolen equipment.
Agreed Value Coverage
Agreed Value coverage protects your boat's full insured value in the event of a total loss, regardless of depreciation. Rather than paying the depreciated market value of your boat, your insurer agrees in advance on a fixed payout amount.
You purchased your boat three years ago and a fire destroys it beyond repair while in storage. Agreed Value coverage pays you the amount agreed upon when you set up your policy, not the lower depreciated value.
Navigation Extension
Standard boat insurance policies typically limit where you can operate your vessel. Navigational Extension coverage allows you to travel beyond the limits outlined in your standard policy.
You're planning a winter trip down the U.S coast with you boat. Without Navigational Extension coverage, traveling outside your policy's standard limits could leave you uninsured.
Unisured Boater Coverage
Since boat insurance isn't mandatory in Canada, there is a chance you could be involved in an accident with a boater who has little or no insurance. Uninsured Boater coverage protects you and your passengers, helping cover injury related costs.
You're anchored near shore when another boat collides with yours, injuring your passenger. The other captian doesn not have insurance. Uninsured Boater coverage can help cover your passenger's injury related costs.
Example: You bought your truck for $48,000 two years ago. After a total loss claim, its depreciated market value is only $38,000. With waiver of depreciation, you receive the full $48,000, enough to replace it with the same vehicle.
Cost Factors
What Determines the Cost of Boat Insurance?
Vessel Value & Length
The size and value of your boat are two of the biggest factors in determining your boat insurance premium. Larger vessels typically come with bigger engines, more onboard equipment and higher liability exposure, which can increase your premiums.
Claims History
Boaters with a claims-free history are often rewarded with lower rates or claims-free discounts, while those with recent or frequent claims may see their premiums increase.
Type of Vessel and Motor
A personal watercraft, fishing boat, sailboat and luxury cruiser each carry different risk profiles based on speed, value and how they're typically used. Whether your boat has an outboard or inboard motor can also affect your premium.
Storage and Usage
Boats used for personal or pleasure use are generally cheaper to insure than those used for rental, charter or commercial purposes. Where you store your boat matters too. Secure marinas or enclosed storage facilities reduce the risk of theft, vandalism or weather related damage.
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