Boats have their own unique insurance because they spend so much time on the water. Water creates it's own risks. For purposes of protecting the sum of money that you've invested in your boat along with your own assets, you'll want insurance specific to boats.
Don't depend on homeowners insurance
Your homeowners coverage might give you minimal coverage on a kayak or canoe, but it probably wouldn't be worth paying the deductible on. It's not going to cover liability when your powerboat is in the water. It won't cover damage, theft or vandalism either.
Don't rely on your car insurance either
Car insurance insures cars. Boat insurance insures boats. It's that simple. If you're towing your boat on a trailer with a motor vehicle, you're probably covered for liability purposes only. Boat coverage isn't going to insure you when your boat is being transported on land.
Medical payment coverage
This is an important coverage for you and any guests on your boat. Whether you're liable or not, it pays for medical and other costs that somebody incurs who was injured on your boat up to the limit of your medical payment coverage.
Towing & assistance
This reimburses you for the costs of emergency help like towing to where emergency repairs can be made, delivery of parts or emergency labor. You'll want this coverage. Boat towing is expensive, and there might not be an immediately available alternative way for you to get home.
Your boat insurance will cover you up to the limits of your liability. You want to be insured for removal and disposal of your boat if you wreck it. Make sure you're covered for pollution containment or clean-up expenses too. Federal law provides for liability up to $854,000.
Save some money on premiums by taking a safe boating class during the off season. Remember that you need specific insurance for your boat. Don't count on your homeowners or auto insurance when you're on the water.