Watercraft Endorsement

What Does Watercraft Endorsement Mean?

A watercraft endorsement is an add-on to a homeowner’s insurance or liability policy that covers boats owned or used by the insured. The insured must pay a premium to add this coverage to their policy. It may cover damages sustained while boating, damages incurred when the boat is docked, medical expenses resulting from a boating accident and liability protection.

Insuranceopedia Explains Watercraft Endorsement

Most homeowners’ insurance policies provide minimal coverage for boats. Boats and other watercraft are one of the property categories that fall outside what homeowners insurance typically covers, which is why a separate endorsement is often needed. A watercraft endorsement works much like a personal property floater, which is another type of add-on used to extend coverage for specific items beyond standard homeowners limits. They generally exclude damages sustained while boating but may offer limited coverage if a boat is damaged at the insured’s residence due to hazards like fire. However, the coverage is often insufficient to replace most boats. A watercraft endorsement bridges this gap. How much extra protection an endorsement adds varies between insurers, so it’s worth comparing options from the best homeowners insurance companies before adding the coverage.

Alternatively, boat owners can choose a standalone boat insurance policy instead of adding a watercraft endorsement to their homeowner’s policy. For boats with higher values or owners who use them frequently, a separate boat insurance policy usually provides broader coverage than an endorsement.