Boat Faqs
Boat FAQs 
  1. Great question! In most states, watercraft insurance is not mandatory – with the exception of Utah. However, keep in mind that many bank, leasing companies and marinas require you to have physical damage and/or liability coverage, so be sure to factor them into your insurance decisions.
  2. Watercraft insurance from American Family includes liability, medical expense and physical damage coverages.

    • Our liability coverages help you pay for injuries, property damage, first aid, and legal defense costs — so you can focus on keeping your dreams on track.
    • If you or your passengers get hurt in an accident, our medical expense coverages pay to get you better — no matter if you caused it or not. Think ambulance fees, hospital expenses, doctor visits, etc.

    • Whether it’s afloat, in transit or in storage, our physical damage coverages give you peace of mind that your watercraft, equipment and motor will be taken care of. Physical damage coverage also includes:
    •     - Emergency Roadside and On-Water Service  
          - Protective Repairs and Recovery Service


      Want to see what these coverages mean for your watercraft? Your agent is always ready to help.

  3. The amount of protection you get is completely up to you and what makes sense for your lifestyle. To start building your policy we offer two main ways to protect your boat/watercraft. They are called actual cash value and agreed value.

    Here’s how it works:

    Actual cash value means that we’ll cover the replacement cost of your boat, minus depreciation for its age and condition.

    Agreed value means that you and you and American Family will agree on the value of your vessel based on an appraisal. In the event of a total loss, you’ll be paid that pre-determined amount. Agreed value policies also pay to repair, rebuild, or replace the necessary parts of damaged property for a partial loss, without any deduction for depreciation.

    Not sure what makes sense for you? Your agent is the perfect person to help you decide.

  4. Yes ─ with physical damage coverage, theft of your boat and its equipment is covered. There is a $3,000 limit for equipment, which you can increase if you’d like. All it takes is a quick email or call to your agent ! In addition, you can add another layer of security to your policy with our Personal Effects & Fishing Equipment Coverage – which protects against the loss of personal property on your watercraft ─ like fishing/diving equipment and clothing.
  5. If your policy includes physical damage coverage, then yes!

  6. One great way to save is by paying the entire cost of your policy at the beginning of each term – we call it our “Pay in Full” discount. Additionally, you can enjoy discounts by completing qualifying safety courses and keeping certain safety equipment on your boat/watercraft. Be sure to ask your agent for all the ways you can save!
  7. Our watercraft policy is designed to offer broad protection for you and your boat, including collision with rocks and other vehicles, theft, fire and explosion. Your agent has the full list of coverages and exclusions, and would be happy to explain the policy to you in detail.
  8. Here are a few common add-ons that can give you extra confidence on the water:

     Our Personal Effects & Fishing Equipment Coverage protects against the loss of personal property on your watercraft like fishing/diving equipment and clothing.*

    •  If your watercraft or property is damaged and you’re facing a partial loss, our Repair Cost Coverage allows you to repair your watercraft, motor or watercraft equipment, without a deduction for depreciation, up to your policy limits.* (This coverage is required in Minnesota)

    • If you’re facing a total covered loss to your watercraft, our Agreed Value Hull Coverage will pay the appraised value of your vessel. Agreed Value Hull Coverage automatically includes repair cost coverage for partial losses, too.*
    • Our Uninsured or Underinsured Watercraft Coverage protects you and others for bodily injury if you’re in an accident caused by another watercraft whose owner/operator is uninsured or underinsured.
    *These add-ons may be subject to limitations.
  9. Anyone who operates your boat/watercraft with your permission is covered.
  10. Using your watercraft for business pursuits* is not covered by our policy, nor is renting it. If your watercraft is seized by the government, involved in illegal acts, or used for racing, it will not be covered. Your agent would be happy to go over a complete list of exclusions with you.

    *The entertainment of your business clients aboard your watercraft is not considered a business pursuit.

  11. You bet! With physical damage coverage, your watercraft and equipment are covered in case they fall off a trailer while in transport.

  12. Anytime your watercraft and trailer are attached to your car, your auto policy will cover the liability for both of them. However, your auto policy does not cover physical damage to your boat while it’s attached to your car. This is where the physical damage coverage of your watercraft policy saves the day!