Sailboat Insurance — Policy Types & Leading Companies
Sailboat insurance is not a commodity — the difference between a well-written policy and a cheap one can be tens of thousands of dollars at claim time. Understanding what you're buying before you buy it matters. This page covers the main policy types, what's included and excluded, the leading companies, and questions to ask before signing.
Types of Sailboat Insurance Policies
Agreed Value Policy
What it is: You and the insurer agree on the insured value of the boat at the time the policy is written. In the event of a total loss, you receive the full agreed value — no depreciation deducted.
Best for: Most cruising sailboats; anyone who needs certainty about what they'll receive in a total loss. The standard choice for well-maintained boats over 25 ft.
Cost: Higher premium than ACV, but typically worth the difference.
Important: Partial losses (repairs) may still be subject to depreciation on some policies — read the fine print. Ask specifically whether partial losses are paid on agreed value or ACV.
Actual Cash Value (ACV) Policy
What it is: In a total loss, the insurer pays the fair market value of the boat at the time of the loss — after depreciation. A 20-year-old boat may be worth far less at claim time than you paid for it or spent maintaining it.
Best for: Older boats with low market value; budget-conscious owners who prioritize liability coverage; boats used primarily for day sailing with minimal offshore exposure.
Cost: Lower premium than agreed value.
Watch out for: Receiving a depreciated payout on a boat you've invested heavily in maintaining. Always compare the agreed value premium — the difference is often small.
Liability-Only Policy
What it is: Covers damage or injury you cause to third parties — other boats, docks, people in the water. Does not cover your own boat at all.
Best for: Old boats worth very little; boats stored ashore; situations where the boat itself isn't worth insuring but marina slip requirements mandate liability coverage.
Typical limits: $100,000–$1,000,000; most marinas require a minimum of $300,000.
Liveaboard Policy
What it is: A specialized policy for sailors who live aboard full time (or most of the time). Standard policies exclude liveaboard use or charge significantly more because the boat is your primary residence and is subject to constant wear.
What it adds: Personal property coverage (clothing, electronics, tools); liability at the dock as well as underway; continuous habitation coverage.
Best for: Full-time liveaboards and sailors spending more than 6 months/year aboard.
Important: Disclose liveaboard status to your insurer. Failing to do so can void a claim.
Offshore / Bluewater Cruising Policy
What it is: Most standard policies have a geographic navigation warranty — typically coastal US waters, sometimes extending to Canada, Bahamas, and the Caribbean. Offshore cruising policies extend coverage to open ocean passages, Mexico, Central America, and international waters.
What it adds: Broader navigation territory; coverage for offshore passage provisions; some include liability in foreign ports.
Best for: Any sailor planning to leave US coastal waters — Pacific Mexico, Caribbean, or ocean crossings.
Important: Always notify your insurer before crossing into new territory. Navigation outside your policy's warranted area may void coverage entirely.
Racing Endorsement
What it is: Standard cruising policies exclude racing ("all vessels competing in a race or speed trial"). A racing endorsement adds coverage for registered racing events.
Best for: Boats participating in organized races — club races, offshore races (Pac Cup, Transpac, Race to Alaska).
Cost: Modest additional premium for club racing; significantly higher for offshore racing.
Uninsured / Underinsured Boater Coverage
What it is: Covers injuries to you and your crew caused by another boater who has no insurance or inadequate insurance. Similar to uninsured motorist auto coverage.
Best for: Any sailor in busy waterways; strongly recommended and inexpensive to add.
Medical Payments Coverage
What it is: Pays medical expenses for crew injuries aboard your boat, regardless of fault. Does not require a liability claim.
Best for: Boats with regular crew or guests; modest additional premium for meaningful coverage.
Towing & Assistance Coverage
What it is: Covers emergency towing, fuel delivery, battery jump, and assistance when you're stranded. Similar to AAA for boats.
Note: Boat US membership ($25/yr) and Sea Tow membership ($195/yr) both offer unlimited towing. Often more cost-effective than an insurance add-on if you're in a well-served area.
Leading Sailboat Insurance Companies
BoatUS / GEICO Marine
Most Popular — US SailorsBacked by GEICO; the most widely used boat insurance among US recreational sailors. BoatUS membership (required for full benefits) includes unlimited towing, launch and haul coverage, on-water assistance, and fuel delivery. Policy options: agreed value, ACV, or liability-only. Add-ons include racing endorsement, diminishing deductible, and trailer coverage. The standard choice for coastal US sailing.
Markel Insurance
Strong Marine SpecialtyMarine specialty insurer with a strong reputation in the sailing community. Agreed value policies; covers sailboats up to 50 ft for cruising and racing. Competitive premiums for well-maintained boats. Available through independent agents and directly. Good claims handling reputation; marine-knowledgeable underwriters.
Progressive Insurance
Widely AvailableThe largest boat insurer in the US by volume. Easy online quoting; broad availability nationwide; competitive pricing. Good for straightforward coastal cruising. Less specialized than Markel or Novamar for offshore or liveaboard situations, but suitable for most day-sailing and coastal cruising boats.
Foremost Insurance
Multiple TiersOffers five insurance packages tailored to different boat types, ages, and coverage levels — Saver, Plus, and Elite tiers plus specialized options. Good for finding tiered coverage that fits a specific budget. Available through independent agents.
State Farm — Boat Insurance
Convenient / BundleAvailable through State Farm agents nationwide; convenient for bundling with home and auto. Suitable for smaller sailboats (under 28 ft) in inland and coastal waters. Less suited to offshore or liveaboard situations.
Novamar Insurance
Marine SpecialistFounded by boaters in 1987; seven US offices; a true marine specialty insurance agency. The best choice for liveaboards, offshore cruisers, and sailors with unusual situations — foreign cruising, older boats, or boats that don't fit standard underwriting. Novamar brokers represent multiple insurers and can place policies that standard carriers won't write. Strongly recommended for any cruiser planning extended offshore passages.
Concept Special Risks
Offshore / Cruising SpecialistOne of the few remaining carriers writing policies for extended offshore cruising — Caribbean, Pacific Mexico, and worldwide. Approved in all 50 US states; specializes in boats cruising named-storm exposure areas and international waters. Can insure first-time boat owners with limited experience where other carriers decline. Placed through surplus lines brokers — ask Novamar or a marine insurance agent.
One80 Marine (formerly West Marine Insurance)
Marine SpecialtyOffers marine boat and yacht programs including agreed value coverage, liveaboard, and extended cruising. Works through independent marine insurance agents.
SkiSafe / Allstate Marine
Budget-FriendlyCompetitive pricing for coastal US sailing; easy online quoting. Good for smaller boats and budget-conscious owners. Limited for offshore or liveaboard applications.
Working with a Marine Insurance Broker
- A marine insurance broker represents multiple insurers and can shop your policy across companies — unlike an agent who represents one company
- For offshore, liveaboard, or unusual situations, a specialist broker is worth the time: they know which carriers write those risks and how to present your situation favorably
- Novamar, Concept (via brokers), and independent marine agents listed through Professional Insurance Agents are good starting points
- Get at least three quotes; policies that look identical often differ significantly in exclusions and sublimits
Questions to Ask Before Buying a Policy
- Is hull coverage agreed value or ACV? And are partial losses (repairs) paid on agreed value or ACV basis?
- What is the navigation warranty? — Exactly what waters are covered; what happens if I sail outside them?
- Is liveaboard use covered? — If you spend more than a few weeks/year aboard, disclose it
- What is the named storm (hurricane) clause? — Many policies have specific requirements about where the boat must be during named storm season (usually June 1–Nov 30); failure to comply can void coverage
- Is racing covered? — Even club races are excluded from most standard policies without an endorsement
- What is the deductible structure? — Some policies have separate deductibles for named storms, total loss, and normal claims
- Is agreed value on the rig and sails included or are they depreciated?
- Is towing and assistance included or extra?
- Does the policy require a recent survey? — Most insurers require a condition and valuation survey on boats over 10 years old, updated every 3–5 years
- What are the lay-up provisions? — Some policies reduce premium if the boat is hauled and stored for winter months
- Is personal property covered? — Tools, electronics, safety gear, dinghy, outboard; what are the sublimits?