Watercraft Coverage This covers the actual boat, engine, propellers and permanently attached equipment- in and out of water while boating, launching, towing and storing. Many times insurance carriers will include the boat and its engine under a single amount. For example, if you have a 1990 30 foot Sea Ray worth $15,000 and a Mercruiser 250H.P. Inboard/Outboard worth $7,000 the carrier will simply cover your boat for $22,000 under "Watercraft Coverage." Check with your agent about how broad this coverage is when it comes to your policy. Some policies will cover damage no matter what, i.e.: hitting submerged object, sand bars, fire. It's important to know what it covers and what you need to do if it doesn't. Their are many companies that specialize in boat insurance and offer a better price than the rest.