Does Boat Insurance Cover the Motor?

Safeguarding your boat’s motor is a primary concern for many owners. The availability and scope of motor coverage depend significantly on the specific boat insurance policy you choose. This guide clarifies how boat insurance typically addresses motor damage.

Understanding Motor Coverage

A boat’s motor is generally included under the “hull” coverage component of a boat insurance policy. Hull coverage protects the physical structure of the boat, along with its permanently attached components, which typically include the engine(s) and machinery. This means if your boat is damaged in a covered incident, the motor, as part of the vessel, would also be considered for repair or replacement.

For some motors, particularly high-value outboards or specialized motors, specific endorsements or separate policies may be necessary to ensure adequate protection. The valuation method of your policy also influences the payout for motor damage.

An “agreed value” policy means you and the insurer agree on a set value for your boat, including its motor, at the policy’s inception. In the event of a total loss, you receive this agreed-upon amount, without depreciation. Conversely, an “actual cash value” (ACV) policy pays out the current market value of the boat and motor at the time of loss, factoring in depreciation. While ACV policies often have lower premiums, the payout may be less than the original cost due to depreciation.

Common Covered Damage Causes

Boat insurance policies typically cover motor damage resulting from sudden and accidental external events. Collision with another vessel or a submerged object is a common cause of covered damage. Damage incurred if the boat sinks, capsizes, or runs aground is also generally covered.

Perils such as fire, theft, and vandalism are usually included in comprehensive coverage, extending protection to the motor. Additionally, damage caused by severe weather events, including named storms, lightning strikes, or hail, are commonly covered.

Standard Exclusions and Limitations

While boat insurance provides extensive coverage, some situations may not be covered. Standard exclusions often include wear and tear, gradual deterioration, and depreciation. Mechanical breakdown is also typically excluded unless it is directly caused by a covered peril, such as a collision. For example, if an engine fails due to age or lack of maintenance, it is generally not covered.

Damage resulting from manufacturer defects or design flaws is usually excluded. Furthermore, damage incurred during racing or other illegal activities, as well as issues arising from improper use or a failure to maintain the vessel, are typically not covered. Some policies may also exclude damage during transport unless specific coverage is added. Additional endorsements, such as mechanical breakdown coverage, can sometimes be purchased to cover specific types of sudden mechanical failures, particularly for lower units of outboard or sterndrive motors.

Filing a Motor Damage Claim

If your boat’s motor sustains damage, contact your insurance provider immediately. You will need to thoroughly document the damage, which includes taking clear photos and videos of the affected motor and surrounding areas.

Gathering relevant information, such as your policy number, the date and time of the incident, and a detailed description of how the damage occurred, is also necessary. If the damage resulted from theft, a police report should be filed promptly. Your insurer may request repair estimates from qualified marine repair facilities, and you should cooperate fully with any inspections or requests for additional information from the adjuster.