Boatowners Beware! Buy a Marine Policy Rather Than Relying Upon a Homeowners Policy For Coverage

Some people accuse me of collecting boats the way others collect coffee mugs—except instead of cluttering up my kitchen cabinets, they’re taking up space in marinas, driveways, and any patch of water I can find. With six sailboats and a motorboat, I consider myself an enthusiast, though my insurance agent probably sees me as a floating liability. While most people worry about insurance covering one vessel, I’ve learned insurance treats boats like that one cousin at family reunions—welcome only under very specific conditions. That’s why a solid marine policy is as essential to me as a sturdy hull in rough seas—because when you have more boats than most people have pairs of shoes, you can’t afford to take chances.

A recent case out of Ohio 1 found John and Raymond Botsch in a tough legal battle against Allstate Insurance Company after a windstorm damaged Raymond’s 30-foot Wellcraft Scarab boat and its trailer. The boat had been stored in the open yard at their family home in Seville, Ohio, when a tree fell on it. Expecting their homeowners insurance policy to cover the loss, the brothers were taken aback when Allstate denied their claim. This denial sparked a lawsuit that alleged breach of contract, bad faith, and fraud. However, both the trial and appellate courts sided with Allstate, ultimately leaving the Botsch brothers without coverage.

The key issue in this case was the language of the insurance policy. When Raymond’s mother passed away in 2017, he wanted to keep her homeowner’s insurance in place. He set up automatic payments through the John Braun Insurance Agency, which procured an Allstate policy in John’s name, as he was the homeowner. However, neither Raymond nor John reviewed the details of the policy, nor did they explicitly discuss insuring the boat with the agent, Matt Piatt.

Allstate based its denial on a specific exclusion in the policy, which clearly stated:

Losses We Cover Under Coverage C: We will cover sudden and accidental direct physical loss to the property described in Personal Property Protection – Coverage C caused by the following, except as limited or excluded in this policy: … 2. Windstorm or hail. We do not cover: … b) loss to watercraft and their trailers … unless inside a fully enclosed building structure.

This provision was straightforward—boats and trailers were only covered if they were inside a fully enclosed building at the time of loss. Since Raymond’s boat and trailer were stored in an open yard, the claim fell squarely within the exclusion, making it ineligible for coverage.

Despite this clear policy language, the Botsches argued that they had been led to believe that all personal property at the residence was covered. They claimed that Allstate’s agent had made representations that caused them to rely on the policy for protection. However, their case lacked evidence. Both Raymond and John admitted in their depositions that they never specifically discussed the boat’s coverage with Allstate. Raymond simply assumed that the insurer already knew about the boat, and John admitted he had never even seen the policy.

The courts were unmoved by their arguments. Most courts generally find that an agent’s verbal statements cannot override the express terms of an insurance contract. The trial court ruled that the exclusion was clear and unambiguous, making Allstate’s denial of the claim entirely proper. Additionally, the court dismissed claims of fraud and bad faith because the Botsches failed to present any concrete evidence that the insurance agent had misrepresented the policy’s terms.

Marine boat policies are crucial for boat owners because they provide specialized coverage that homeowner’s insurance policies typically lack. While some may assume their homeowner’s insurance will protect their boat, coverage under these policies is often minimal and subject to strict limitations. Marine insurance is specifically designed to address the unique risks associated with owning and operating a boat, offering broader and more comprehensive protection.

One of the key differences is the scope of coverage. A homeowner’s insurance policy may provide limited coverage for small boats—usually up to a certain dollar amount, often around $1,000 to $1,500—but larger or high-value boats, such as yachts or powerboats, are usually excluded. Additionally, homeowner’s policies often have restrictions on where coverage applies. Similar to this case study, a homeowner’s policy might cover a boat only while it is stored on the insured’s property but not when it is in transit or in the water. Marine policies, on the other hand, offer protection whether the boat is in storage, on a trailer, or navigating inland or coastal waters.

Another major difference is liability coverage. A homeowner’s policy may provide some liability protection for small boats, but it is typically limited in scope and amount. Marine policies, however, offer higher liability limits and more specific protections for risks such as fuel spills, towing, uninsured boaters, and accidents involving passengers or third parties. This is particularly important because boating accidents can lead to significant damage or injuries, and without adequate coverage, a boat owner could be personally responsible for costly claims.

Marine policies also include specialized coverage tailored to boating risks. This can include protections for damage caused by storms, collisions, theft, and vandalism. Many marine policies offer coverage for additional equipment, such as navigational electronics, fishing gear, and trailers. Some even provide coverage for emergency towing and salvage costs, which can be substantial in the event of an accident or breakdown at sea.

Finally, marine policies often cover broader geographic areas than a standard homeowner’s policy. Home insurance policies generally only cover boats while they are on the insured’s property, whereas marine policies provide coverage in various waterways, including lakes, rivers, and even international waters, depending on the policy terms.

For insurance policyholders, the lesson is clear: never assume coverage and hire a great insurance agent who fully understands all the property you own. Ask the agent specific questions, confirm coverage details in writing and try to read through the policy. As the Botsches discovered the hard way, relying on vague verbal assurances and personal assumptions can be an expensive mistake.

The above photograph is from the current Sailing World Magazine with my 68-foot racing sailboat Merlin during a regatta in San Franciso this fall. This boat was built and named Merlin in 1977. I was fortunate to purchase her in 2017 and wrote about some of our adventures in Mavericks & Merlins: Sailors And Renegades Leave Shore, What About You?

Thought For The Day

“When you get on the boat, make sure you don’t forget the booze. The sea is unforgiving, and so is a sober crew.”
—Ernest Hemingway

1 Botsch v. Allstate Ins. Co., 2025-Ohio-67, — N.E.3d —, 2025 WL 79957 (Ohio Ct. App. Jan. 13, 2025).