Only a small handful of states actually require boat insurance, but there are a few situations where you may need it. First if you dock your boat at a marina, they may require some form of coverage in order to protect their business. Second, if you finance your boat, nearly every lender will require coverage to protect their investment.

Other than that, you should always have at least liability coverage on your boat to protect yourself against lawsuit costs if you cause bodily injury or property damage. Property coverage is optional, but again, the more comprehensive your coverage, the better it can protect you.