There’s nothing like boating in Tennessee. From Percy Priest to Old Hickory Lake, thousands of families and friends hit the water every spring and summer to relax, fish, or make unforgettable memories. But before you lower that motor into the water, you’ll want to make sure your boat insurance is in place.
Why? Because one accident on the water could sink your savings. And if you’re storing your boat in a marina, insurance isn’t just smart—it’s often required.
Here’s what every Tennessee boater needs to know before the season begins.
The boat insurance experts at Holt Insurance can help. Learn more about our coverage here >>
1. Is Boat Insurance Required in Tennessee?
Technically, Tennessee law doesn’t require boat insurance the way it does auto insurance. But that doesn’t mean you’re off the hook.
Here’s where coverage is often required:
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Marinas: Many require liability coverage before they let you dock or store your boat.
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Lenders: If your boat is financed, your lender likely requires full coverage until it’s paid off.
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Personal liability: If you injure someone or damage property on the water without insurance, you’re financially responsible—no questions asked.
Bottom line: Just because it’s not required doesn’t mean it’s not necessary.
2. What Does Boat Insurance Cover?
A standard boat insurance policy typically includes:
a. Liability Coverage
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Covers injuries you cause to others
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Covers property damage (e.g., another boat, dock, or marina)
b. Physical Damage Coverage
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Covers damage to your boat from:
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Collisions
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Fire
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Theft
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Vandalism
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Storms
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c. Uninsured Boater Coverage
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Covers your injuries if another boater hits you and doesn’t have insurance (a real risk in Tennessee).
d. Towing & Assistance
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Pays for on-water towing if your boat breaks down
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May cover fuel delivery or jump starts
e. Personal Property
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Covers gear like fishing rods, safety equipment, GPS, or coolers onboard your boat
f. Trailer Coverage
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Covers your boat trailer from theft or damage while stored or in transit
3. Does My Homeowners Policy Cover My Boat?
Short answer: Not really.
Your homeowners insurance might offer limited coverage for very small, low-powered boats (like a canoe or Jon boat), but:
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It likely excludes larger boats
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It won’t cover you if you’re on the water
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It won’t include liability while operating the boat
If your boat has a motor over 25 hp, you almost definitely need a standalone boat policy.
4. How Much Does Boat Insurance Cost in Tennessee?
On average, most boaters in TN pay $200–$500 per year for solid coverage.
Your premium depends on:
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Type of boat (pontoon vs. speedboat vs. fishing boat)
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Size and horsepower
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Where it’s stored (garage vs. marina)
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Whether you use it on inland lakes or coastal waters
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Your boating experience and claims history
You can often bundle boat insurance with your auto or homeowners policy to save 10–20%.
5. Common Mistakes That Leave Boaters Underinsured
a. Skipping liability coverage
This is the most important part of your policy. A single injury claim could cost tens of thousands—or more—without it.
b. Not covering the trailer
Many people forget to insure the trailer separately, which can be stolen, vandalized, or damaged in transit.
c. Not updating storage location
Where you store your boat (garage, driveway, marina, storage lot) affects your premium. Be honest and keep it updated.
d. Not understanding “actual cash value” vs. “agreed value”
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Actual cash value policies depreciate your boat over time.
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Agreed value policies lock in a value with your insurer, regardless of age.
We can help you choose which works best.
6. Do I Need Boat Insurance If I Only Use My Boat Occasionally?
Yes. Even if you only hit the lake a few times a year, you still face the same risks:
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Accidents
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Theft (especially while stored)
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Damage during transport
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Liability from passengers falling or getting hurt
If your boat is valuable enough to store and maintain, it’s worth protecting properly.
7. How to Get the Right Boat Insurance in Gallatin, TN
As an independent agency, we work with multiple top-rated carriers to compare policies and get you:
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The right coverage
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At the best price
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With local service if you ever have a question or claim
We insure all types of watercraft:
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Bass boats
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Pontoons
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Jet Skis / PWCs
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Cabin cruisers
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Ski boats
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Fishing boats
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Sailboats
Want a Quick Boat Insurance Quote?
We make it simple.
Click here to request your boat insurance quote now »
Or give us a call at (615) 230-7704 to speak to a local agent who knows Tennessee boating inside and out.
About Holt Insurance TN
We’ve been protecting Tennessee families and boaters since 1881. Whether you fish, ski, or just cruise the lake, we’ll make sure your coverage keeps up with your lifestyle.
Have a question on this topic?
Call 615-230-7704— we answer.