Are There Exclusions on My Boat Insurance

November 28, 2023 | by admin

Does my boat insurance cover everything?

You may not know that there are some exclusions on your insurance policy and they will depend on the type of boat coverage you have and on your insurance provider.

Generally, a standard boat insurance policy does not cover losses related to the following:

Wear and tear

Your boat will start to show its wear and tear over time on its propeller and on piston rings inside the engine, for example. Typically, your boat insurance won’t cover any repairs or replacements caused by natural wear and tear.

You are responsible for regularly maintaining and servicing your boat to keep it in good repair.

Saltwater corrosion is another common way that a boat can deteriorate over time and it’s typically not covered by boat insurance.

You can protect your boat from corrosion and rust by regularly giving your boat a freshwater bath to remove salt and other minerals that have built up.

Boat insurance policies don’t cover machinery or parts that are damaged or need to be replaced due to a lack of maintenance or misuse.

(You will also hear boat insurance called marine insurance.)

Damage from insects or wildlife

Most boat insurance policies do not cover insects, animals, and mold. This means you can expect not to be covered for a loss if your boat is damaged by raccoons or squirrels, termites, zebra mussels, or barnacles eating away at your boat.

You need to clean, drain, and dry all of your boat equipment after use. Getting rid of excess water and moisture helps deter marine infestations and mold.

Cleaning up any spills and messes on your boat will help keep away any animals or insects from coming back for more.

Improper storage and transportation

Your boat insurance is year-round. Most basic boat insurance policies will protect your boat against fire, vandalism, theft, and winter storms in the off-season.

It’s important to note that your insurance provider generally won’t cover your boat if it’s improperly stored and transported in the off-season. For example, if you don’t properly tie your boat while driving it from the water to storage and the boat falls off, your insurance company won’t cover it.

Boats are covered when they are stored during winter. Specific storage and winterization requirements may be included in insurance policies, so it’s important to go over your policy’s details to make sure there are no gaps in coverage.

Boat Accessories

Unless otherwise stated in your insurance policy, most insurance companies will not cover boat equipment or accessories, such as:

  • Electronic equipment including radar
  • Navigation/GPS systems and fish finders
  • Life jackets
  • Modifications to your boat
  • Anchors

Navigation limits

If you are sailing on the ocean, most boat policies will cover you for a specific geographic region. If you sail out of your navigation limits or into off-limits waters, your boat insurance is not in effect.

Make sure you know your sea navigation area to understand where your boat is and isn’t covered on the water.

Special Trip Endorsements

Your insurance company should be notified if you will travel outside Canada or the United States, such as to Mexico or the Bahamas. Boat insurance policies won’t cover your boat if it isn’t in Canadian or U.S. territorial water.

You will need a trip endorsement for temporary insurance coverage for your boat while it is in international waters.


Boat insurance does not cover your boat for any races and other special events. Speak to your Western Financial Group boat insurance expert if you are going to use your boat in races or competitions.

What else is not covered by boat insurance?

  • Manufacturer defects
  • Blistering
  • Marring
  • Scratching

Do I need boat insurance?

Boat insurance is not required by law in Canada, but depending on where you live your marina or lending institution may require that you have boat insurance. Boat insurance protects you and your boat when you need it.

Advantages of boat insurance

  • Marine insurance provides financial protection if your speedboat, sailboat, or other type of watercraft is involved in an accident, is damaged or stolen.
  • Marine insurance includes liability coverage in case you are responsible for another person's injuries or property damage.

Western Financial Group offers a complete set of insurance products and solutions through our licensed sales brokers who are located across Canada. Car, home, many types of recreational vehicles and commercial/business insurance.

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