Does Boat Insurance Cover Lower Unit Damage? – Insurigo Inc

Does Boat Insurance Cover Lower Unit Damage? – Insurigo Inc

Are you planning to buy Boat Insurance, and need to know about its coverage? Don’t panic, we have got you covered. Boat Insurance is a necessity for engaging in safe water-based travel on personal boats. There are huge bodies of water in the State of Texas. It has a long coastline along the Gulf Coast. Moreover, it has over 14,500 square kilometers of inland water. This amount of water bodies gives Texas the largest amount of inland water of the contiguous 48 States. These numerous water sources provide a huge space for recreational water sports; which include boating with boats and jet skis.

Boating is a lot of fun and many families indulge in this activity. Many do this for pleasure, while others for business. Boating is similar to driving; as such, it carries equal, if not more risk. One must always be wary of water, for it is deadly to those who disrespect it. This is the main reason why boating in Texas always comes with its share of risks. That is why, the State requires all boat users to follow strict operational requirements. Moreover, the chances to take to the water require the availability of boats and watercraft insurance.

Boat Insurance: What It is

Boat Insurance protects you in case of a loss or damage to your boat. It applies to most motorized watercraft, such as fishing boats, pontoon boats, paddle boats, recreational vessels, and yachts. Your homeowner’s insurance policy may provide some limited coverage for small watercraft. You may also be able to include a specific endorsement or purchase additional coverage.

Boat Insurance coverage can vary greatly in terms of what they cover or do not cover, depending on a variety of factors. Some of the considerations include the type and age of the boat, the location (waterways), and the duration of the boating season. Still, basic coverage is available, as well as potential reductions for careful boaters.

Boat Insurance Coverage in a Homeowner’s Insurance Policy

If your boat or watercraft is destroyed or vandalized outside of the water, your homeowners’ insurance policy will cover it only partially. Most policies will only compensate you up to $1,000 if your boat, Jet Ski, or other watercraft is wrecked or damaged by the following.

  • Fire
  • Wind
  • Explosions
  • Hail
  • Theft
  • Vandalism
  • Falling objects

If your watercraft is stolen, your homeowners’ insurance will most likely reimburse you up to $1,000.

When it comes to hail damage, there is a unique requirement that the watercraft be in an enclosed facility for the damage to be eligible. For example, if a hailstorm hits and damages your boat or PWC outside, you will be unable to file a homeowner claim. However, if the boat is in a building or storage enclosure with cracked glass, which allows hail to enter and harm it, you are covered. 

Liability Coverage in Boat Insurance

Liability coverage is one of the most important aspects of the majority of insurance policies. Similarly, liability coverage is an essential part of boats and watercraft insurance. The policy can protect if you cause property damage or physical injury to a third party.

Boat Insurance policies include liability coverage, which can pay for damages or injuries you are responsible for while boating, up to certain limitations, as well as legal fees if you are sued.

Property damage liability coverage pays for damage to another person’s vehicle or property if you cause an accident with your boat. Pollution liability protection and wreckage clearance are offered.

Lower Unit Damage in Boat Insurance

The lower unit of your boat is an essential component that holds the gears, shafts, and propellers. It is responsible for transferring power from the engine to the propellers, which allows your boat to move ahead. Unfortunately, because it is placed beneath the boat, the bottom unit is particularly subject to physical damage from underwater obstacles such as rocks, sandbanks, and debris.
The coverage for lower unit damage varies according to the type of Boat Insurance policy you acquired. Boat Insurance policies are often divided into two types: liability-only and complete coverage.

Liability-only coverage

This sort of Boat Insurance policy only covers damage caused by your boat to other people’s property or injuries experienced by others while you are operating it. It does not cover damages to your boat, including the lower unit. As a result, if you simply have liability coverage, you will have to pay for the repair or replacement of your bottom unit out of cash.

Comprehensive coverage

Comprehensive Boat Insurance coverage provides more protection than liability coverage. It protects against damage to other people’s property or injuries experienced by others while operating your boat, as well as damage to your boat caused by an accident, theft, or natural events such as storms, fires, and floods. This sort of Boat Insurance policy normally covers the lower unit, subject to certain exclusions and deductibles. 

It is critical to carefully review your Boat Insurance coverage to discover whether or not your lower unit is insured. Some policies prohibit damage caused by regular wear and use, incorrect installation or maintenance, and intentional or illegal behavior.

It’s also worth noting that repairing or replacing a lower unit might be expensive, depending on the size and kind of your boat. As a result, if you frequently use your boat in waters with underwater impediments, you should consider purchasing a complete Boat Insurance policy that covers the lower unit.

Boat Insurance can help protect your boat from many sorts of damage, including lower unit damage. However, the level of coverage is determined by the type of Boat Insurance you buy. If you are unsure whether your lower unit is insured, contact your insurance company for clarification.  

Various Other Boat Owner Qualifications in Texas

  • You can reduce a lot of potential liability risks by operating your boat lawfully.
  • Every boat in Texas must carry a proper title and registration to operate.
  • Only 13-year-olds and above can operate a boat alone.
  • A boat operator must complete and pass a boater education, according to Texas law.
  • All boat operators must carry photo identification and an operational certificate on their person.

How Much is Boat Insurance

Boat Insurance costs an average of $300 to $500 each year. Depending on the type of boat and your characteristics, your insurance premiums could be much higher. “Your Boat Insurance prices will be largely determined by the type of boat, its length, and its intended use. The type of boat you own, whether it’s a speedboat, a tiny fishing boat, or a yacht, will have a significant impact on the price you pay.

The cost of Boat Insurance depends on:

  • What state do you live in
  • The kind, size, and age of the boat you want to insure
  • Motor dimensions and power type
  • Whether you use it on inland waterways or the broad ocean
  • Whether you selected extra coverage choices


It can be hard to find your way around Boat Insurance, еspеcially when it comes to the important lower unit. Comprеhеnsivе covеragе usually covеrs accidеnts, damagе that happеns out of thе bluе, but if it doеs not covеr normal wеar and tеar, or carеlеssnеss. Do not bе scarеd, Many insurancе companies offer еxtra covеragе options just for lowеr units which can protеct you from mеchanical issues or еvеn spеcific risks, likе things that arе submеrgеd. Gеt in touch with your agеnt to fully understand your insurancе and talk about other covеragе options. Do not lеt a quick lowеr unit disastеr lеavе you without any hеlp; instead, plan for pеacе of mind by making surе you havе thе right safеty gеar on board. Insurigo Inc. is your go-to company for providing unmatched Boat Insurance in Texas and nearby areas. You can rely on our expert brokers to acquire exceptional Boat Insurance solutions to protect your boat’s lower unit. Contact us today or get a quote for a free consultation.


Is lowеr unit damagе covеrеd by standard Boat Insurancе policiеs?
Yеs, most standard Boat Insurance policiеs providе covеragе for lowеr unit damagе. Howеvеr, covеragе dеtails may vary, so it is еssеntial to rеviеw your policy to undеrstand thе еxtеnt of protеction.

How can I filе a claim for lowеr unit damagе undеr my Boat Insurancе?
To filе a Boat Insurance claim for lowеr unit damagе, contact your insurancе providеr promptly. Providе dеtailеd information about thе incidеnt, including photos if possible, and follow thеir instructions for a smooth and еfficiеnt claims process. 

Is it possible that lower unit damage might not be covered?
There are times when lower unit damage from normal wear and tear or not getting enough maintenance may not be covered. It’s very important to follow the right maintenance methods and know what your Boat Insurance covers.

What factors decide the coverage for damage to the lower unit?
Coverage is often based on what caused the damage, like an accident, a broken machine, or another covered peril. This type of Boat Insurance contract and any optional add-ons can also change the coverage.

Can I get more coverage so that the unit gets damaged less?
Yes, some insurance companies do offer extra coverage choices or endorsements that can help protect against more damage to the unit. Talk to your insurance company to find out what choices you have.