Q. Am I required by law to have boat insurance?
A. Boat insurance is not mandatory in every state.
However, if you have a loan using the boat as collateral the bank will require boat insurance coverage listing them as a loss payee to cover their interest in your boat.
Further, if you do not provide insurance for your financed vessel, lenders will âforce placeâ insurance that is often prohibitively expensive. A marine insurance policy purchased through a carrier like Global Marine will cost significantly less while providing the coverage you require.
In addition, most marinas will require you to maintain boat insurance in order to keep your boat at their facility.