How to File a Boat Insurance Claim: Safety, Mitigation, Documentation and Settlement

Account for everyone aboard. Put on life jackets. If anyone is hurt, in the water or missing, or the boat is sinking, burning or spilling fuel, call the USCG on VHF 16 (or 911 from shore) right away. Insurance comes second. Don't take risks to save equipment; a policy can replace a boat but not a person.

Every policy BoatUS describes requires you to take reasonable steps to protect the boat from further loss. Examples:

• A storm tore off the canvas: tarp the electronics and cabin so rain doesn't finish the job.
• The boat took on water: keep pumping, and once it's raised get the engines flushed and pickled quickly so corrosion doesn't set in. See our submerged engine recovery guide.
• Lightning strike: the boat should be hauled so the hull and through-hulls can be checked.
• Theft or a broken hatch after a storm: secure what's left. BoatUS notes that policies should reimburse reasonable security costs for an exposed boat.

BoatUS explains that these reasonable mitigation costs are paid under the policy's "Sue and Labor" provision, in addition to hull coverage. Keep every receipt.

Call or file online as soon as you can. BoatUS's claims managers say: if you're not sure it's worth a claim, call anyway, and call right away. Their reasons:

• Damage that looks minor often costs more than you'd think to repair.
• If the damage ends up below your deductible you can withdraw it; at BoatUS, a report with no loss payment isn't counted as a claim and doesn't affect your premium. Check how your own insurer treats this.
• Waiting can sink the claim. If parts are repaired and thrown away before the insurer sees them, the insurer can't confirm the cause or extent, and the claim can be denied.
• Any possible injury, even to a friend who says "I'm fine," should be reported immediately. BoatUS has seen lawsuits arrive months or years later.

You'll get a claim number and an assigned adjuster, usually within a day or so. Write down the claim number, the adjuster's name and every call (date, who, what was said).

Separately from insurance, federal rules (33 CFR 173.55) require the operator to report a boating accident to the state reporting authority when someone dies, is injured and needs more than first aid, disappears, or when damage to boats and other property totals $2,000 or more (or a boat is a complete loss). Deadlines are as short as 48 hours for deaths within 24 hours, injuries and disappearances, and 10 days for property damage. If the operator can't report, the owner must. Your state boating agency has the form; states may set stricter rules, so check yours. Report theft to the police and get a report number; insurers usually ask for it.

Take photos and video before cleanup, repairs or salvage whenever it's safe:

• Wide shots of the scene (where the boat is, the dock, the weather, other boats involved)
• Close-ups of every damaged area, with something for scale
• The HIN plate, engine serial tags and registration numbers
• Water lines inside the hull, wet wiring, damaged electronics
• The other boat's name, numbers and owner/insurer details if another boat was involved, plus witness names and phone numbers

Keep damaged parts until the adjuster says you can discard them. Tell any yard working on the boat the same thing, in writing.

Insurers may ask for a written statement of what happened, a list of lost or damaged property, ownership papers, witness information or a diagram, according to BoatUS's claims page. Pull together:

• Title or documentation, registration and bill of sale
• Your maintenance log and receipts (impeller changes, hose and clamp replacements, survey reports, winterization invoices). A good log is your best answer if the insurer asks whether the failure was wear and tear or lack of maintenance.
• Receipts for electronics and upgrades, with serial numbers
• Mitigation receipts (towing, pumping, tarps, haulout, security)

Gear and upgrades are where claims come up short. An insurance agent interviewed by Mercury suggests laying out your rods, reels, tackle and other gear once a season, shooting a quick 30-second video and emailing it to yourself, so the list exists even if the boat and phone are gone. He also notes that an agreed value often comes with a time limit, and that after a repower, new electronics or other upgrades you should get a written appraisal of the boat's new value and send it to your insurer; otherwise a claim is settled on the old value. Expensive gear may need its own coverage, and claiming it on a homeowner's policy can raise that premium. Check these before a loss, not after.

BoatUS defines a tow (or ungrounding) as help with no immediate danger to the boat or the environment and no special equipment. Salvage involves immediate peril to the boat or the marine environment, or special equipment like pumps, air bags, cranes or dredging. A sinking or a hard grounding is salvage.

• Towing memberships cover tows, not salvage. Salvage, including the tow from the salvage site, is paid by a boat insurance policy, if it covers it.
• Salvage can be very expensive. BoatUS says it can cost hundreds of dollars per foot after a hurricane, and policies handle it differently: some subtract it from what you get to fix the boat, some cap it at a percentage of the insured value, and some pay it separately up to the insured value.
• Call your insurer before you sign a salvage contract whenever you can. After a storm, BoatUS advises letting the insurer arrange salvage, because inexperienced or overpriced crews can cause more damage and delay. If a marina wants to salvage or move your boat, it should have your permission and your insurer's agreement first.
• If you're in danger right now, accept help and sort out paperwork later. Never risk lives over a contract.

BoatUS's claims page warns not to admit liability, fault or responsibility to anyone, because doing so could jeopardize your coverage. Be polite, share insurance details and facts, and let the insurer handle the other party. Don't sign anything about the claim (including documents from the other boat's insurer or a salvor) without talking to your adjuster first.

For small claims, the adjuster may write the damage appraisal. For bigger ones, a marine surveyor inspects the boat and you'll get repair estimates. Tips from BoatUS:

• Be there for the inspection if you can. You know the boat best, and you may spot damage they'd miss.
• Ask questions. Point out anything you noticed (new vibration, a soft spot, electronics acting oddly).
• Choose a marine repair facility you trust; your settlement is based on its estimate. Avoid auto shops for boat repairs: they may not know ignition-protected parts or proper fiberglass work.
• Ask for estimates that split parts and labor, as BoatUS's claims page describes.

Only you, the owner, can authorize work on your boat. BoatUS recommends waiting until the insurer approves the estimate, so you know exactly what is covered. Once approved, you get a settlement letter, and payment is made minus your deductible and any depreciation. If you have a loan, expect the check to be made out to you and the lienholder unless the lender signs off. Stay involved: BoatUS's surveyors stress that the insurer only writes the check; you (or someone you appoint) have to push the repair forward.

If repairs would cost more than the boat is insured for (or the boat is gone), the insurer may declare a total loss or constructive total loss. Typically you sign settlement papers, get paid the agreed value (agreed-value policy) or market value (ACV policy) minus any deductible, and hand over the title. BoatUS notes that owners usually have the option to buy the boat back at its salvage value, and that totaled boats are often auctioned "as is, where is." If you keep a totaled boat, ask how it affects the title; some states brand the title, and later insurance can be harder to get. See our salvage title guide.

Read the wreck removal section too. BoatUS explains that some policies pay a fixed extra percentage of the insured value and leave wreck removal to you, while others pay removal required by law up to the liability limit.

Every policy is different, but these come up again and again:

• Wear, tear and corrosion. BoatUS says half of sinkings at the dock start with a small part below the waterline failing (stuffing boxes, outdrive bellows, hoses and clamps, sea strainers), and most insurers exclude the failed part as wear, tear and corrosion. Some also exclude the resulting sinking; others cover it.
• Lack of maintenance. Gradual leaks, rot, osmosis and neglected parts are usually not "sudden and accidental."
• Mechanical breakdown. Usually excluded unless you bought an endorsement for it (BoatUS sells a lower-unit breakdown add-on, for example).
• Freeze damage. BoatUS describes ice and freeze damage as usually excluded unless you add coverage, often requiring professional winterization.
• Fuel spill liability may be paid only if the loss itself was covered, according to BoatUS.
• Navigation limits, named-operator rules and lay-up periods. Using the boat outside your cruising area or out of season can void coverage.

Ask the adjuster to explain, in writing, how the amount was calculated and which policy clause applies. Send extra evidence (more estimates, comparable sale listings for value, maintenance records). If you're still stuck, ask about the policy's appraisal or dispute process, and contact your state's department of insurance; every state has one that handles consumer complaints (the NAIC website links to each state's complaint page). You usually don't have to accept the first offer: answer it in writing with your evidence. For large losses, a marine attorney or independent surveyor can be worth the fee.