Last Updated on June 30, 2025 by The Insurance Pros
Michigan Boat Insurance: What’s Covered, What’s Not (2025)
Does your homeowner’s policy cover your boat? It might, but only to a limited extent. Coverage depends on your boat’s size, value, and how and where it’s stored.
🏠 Boat Coverage on a Michigan Homeowners Policy
Most homeowners insurance offers very limited protection for small sailboats or powerboats with engines under 25 horsepower. This coverage typically applies only when the boat is stored at home and is usually capped at $1,000 or 10% of your dwelling’s value.
Wind or hail damage may only be covered if the boat is stored inside a fully enclosed building like a garage. You cannot include liability protection unless you add an endorsement. You may also exclude theft.
🛥️ What Boat Insurance Covers in Michigan
A separate insurance policy for boats in Michigan is recommended for:
- Larger powerboats or yachts
- Jet Skis, WaveRunners, and other personal watercraft
- Boats docked at marinas or taken on public lakes
Two common boat coverage options:
- Actual Cash Value: Pays for replacement minus depreciation.
- Agreed Value: You and the insurer agree on a payout amount with no depreciation.
Most policies also include:
- ✔️ Property damage (e.g., hitting a dock)
- ✔️ Medical payments
- ✔️ Guest passenger liability
- ✔️ Theft and vandalism
🚫 What’s Not Covered?
- ❌ Wear and tear
- ❌ Mold, rot, or animal damage
- ❌ Flood damage
- ❌ Defective equipment or maintenance issues
💡 Michigan Boat Insurance Tips (2025)
- Liability coverage is not required by Michigan law but is strongly encouraged by the DNR.
- Many marinas in Michigan (like the Traverse City and Detroit River areas) now require proof of boat liability insurance before renting a slip.
- Lenders often require full coverage if you finance your watercraft.
🎓 Save Money with Boater Safety Certification
Completing a Michigan boating safety course can reduce your premium and is often required for youth operation.
🔻 Discounts Available:
- ✅ U.S. Coast Guard-approved fire extinguisher
- ✅ 2+ years of claims-free boating
- ✅ Completed safety course certification
📦 What a Full Boat Policy Covers:
- 🎒 Personal Effects: Electronics, fishing gear, and gear stored onboard
- 👨⚕️ Medical Payments: For you and your guests if injured during boating
- 🛑 Property Damage & Fuel Spill Liability: Protects against accidents and environmental damage
🔗 Related Resource
👉 Also read: Personal Watercraft Rules & Coverage for Michigan Teens
📞 Ready to Get Covered?
Start now by requesting a quick quote:
