Do I Really Need Boat Insurance?

Boat · Originally published July 29, 2020 · Updated November 2026

If you just bought a boat for Table Rock Lake or Grand Lake, you might be wondering whether insurance is one more bill you can skip. Unlike car insurance, boat insurance is not required by Missouri law. But "not required by the state" is not the same as "not needed." Here is how to think it through.

Who may require it anyway

Even without a state requirement, you may not have a choice:

• Lenders. If you financed the boat, your loan almost certainly requires physical damage coverage until it is paid off.
• Marinas and storage facilities. Many require proof of liability coverage before you can rent a slip or store your boat.
• Other states and waters. Rules differ in other places, so check before you trailer your boat somewhere new.

Your homeowners policy is not a boat policy

A common assumption is that homeowners insurance covers the boat. Homeowners policies usually provide little or no coverage for boats and personal watercraft. Any coverage that does exist tends to be limited to small boats, low horsepower or small dollar amounts, and liability on the water is often excluded. Our article on what homeowners does not cover goes into more detail.

What boat insurance covers

A boat insurance policy can be built from several parts. Common ones include:

• Liability for injuries to others or damage to their property, such as another boat, a dock or a swimmer
• Physical damage to your boat, motor and often the trailer, from things like collisions, fire, theft, wind, hail and sinking
• Medical payments for you and your passengers
• Uninsured boater coverage, for when someone without insurance injures you
• Personal effects like fishing gear and electronics
• Towing and on-water assistance if you break down

How the boat is valued after a total loss matters a lot. See agreed value vs. actual cash value for the difference.

The liability question

The biggest reason to carry boat insurance is often liability, not the boat itself. Busy weekends on Lake of the Ozarks and Table Rock Lake mean lots of boats, swimmers, skiers and tubers sharing the water. If you injure someone, you could be held responsible for medical bills, lost wages and legal costs, and those can far exceed the value of your boat. If you tow people, read about liability when towing skiers.

If you own an older small boat outright, rarely use it and could afford to replace it, you may decide physical damage coverage is not worth it. Even then, liability coverage is worth pricing. The cost is often modest compared with the risk you take on every time you leave the dock with passengers.

A few more things to know

• Personal watercraft carry similar risks and are often insured on their own policy, so ask about them separately.
• Boater education is required in Missouri for anyone born after January 1, 1984 who operates a vessel on Missouri lakes, and some companies offer a credit for completed courses.
• Where you boat matters. Our Table Rock Lake boat insurance page covers local considerations for the Branson area.

Talk to a local agent

Want a quote that fits how and where you boat? Call 417.865.4800 or request a quote on our boat insurance page.

Common questions

Is boat insurance required in Missouri?

No, Missouri law does not require boat insurance, but lenders and many marinas do.

Does my auto policy cover my boat while I'm towing it?

Your auto policy may extend some liability while towing, but it generally does not cover physical damage to the boat itself. A boat policy fills that gap.

Can I insure a jet ski the same way as a boat?

Personal watercraft can be insured with similar coverages, often on their own policy. Ask your agent which approach fits best.

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