Boat insurance will normally cover physical damage and liability. The insurance industry will put watercrafts into three categories. First being boats which are generally anywhere between sixteen and twenty five feet, yachts which are twenty six feet or greater and personal watercraft which are jet skis, wave runners and other small vessels. Most of the watercraft that fall under the “boat” definition are smaller powerboats as well as sailboats. The physical damage coverage will pay to replace or repair the boat if it happens to be damaged or destroyed by fire, lightning, vandalism, theft or a windstorm. The covered items on the boat include outboard motors, boat trailers, personal property that you may have kept on the boat and of course the boat it’s self. Things that will not be covered are not part of normal operation will not be covered. Although you may find some companies that offer additional insurance at an extra cost for things like fishing equipment, computers and cell phones that you may use while you are aboard. The liability coverage will protect you if you are found responsible for the damage or injury that ensues while you or family members are driving the watercraft. Liability insurance is normally offered in one hundred thousand dollar increments. Because lawsuits tend to happen more often than not it is wise to purchase such coverage. Homeowners insurance may sometimes include coverage for your watercraft while it is at your home but it is very limited. This policy might even offer some liability coverage while the boat is at your home but it is very limited. Some marinas may not let you dock your watercraft unless it is insured. All three types of watercraft require different types of insurance coverage. Like many types of insurance these policies will vary quite a bit between companies. If you are looking to purchase a certain type of watercraft it is in your best interest to shop around to find the best and most responsibly priced policy. You may think, wow, I’ve spent a lot of money already on this watercraft, but in all honesty it will be smartest dollars that are spent in case the unexpected happens.