10 Things to Know About Insuring Boats & Marinas

1. The global boat insurance market size was projected at $1.8 billion in 2024 and is expected to hit $2.6 billion by 2032. The U.S. region accounted for an 87% share of the boat and yacht insurance market.
2. In 2023, the boat insurance segment accounted for over 63% of the boat & yacht insurance market share and is expected to exceed $1.7 billion by 2032. Boat insurance includes smaller recreational crafts such as speedboats, fishing boats, and personal watercraft.
3. Regarding water vessels, 33% of all lightning claims are from Florida, where the strike rate is 3.3 boats per 1,000. The majority of strikes are on sailboats (four per 1,000), but powerboats get struck also (five per 10,000).
4. Stricter rules and specifications of marinas and lending institutions are driving the yacht insurance market. Many demand proof of insurance before letting boat owners park or finance their vessels.
5. Liability insurance covers a boat’s owner if an incident harms another person or damages another person’s property. Comprehensive insurance covers damage or loss to a vessel caused by theft, fire, vandalism, and natural catastrophes.
6. 59% of the boat and yacht insurance market comprises agreed-value policies. Under an agreed value policy, parties agree on a specific value for the vessel at policy issuance. In the event of a total loss, the policyholder receives the agreed-upon amount, regardless of depreciation or market fluctuations. This is especially important for luxury vessels that may have significant customization or enhancements. The remainder of the market is made up of cash value policies.
7. Yacht ownership has grown sharply since 2019. 2021 was a record year for yacht sales, and even though the volume overall fell in 2022, sales remained 44% higher than the average for the prior 12 years. New-build yacht orders surged 54% in 2022, even as pre-owned yacht brokerage decreased by 30%.
8. Since 2019, the yacht insurance market has experienced a significant disruption reflecting natural catastrophe losses and higher reinsurance costs, leading to mid- to high-double-digit hikes in hull premiums for virtually all yacht owners.
9. Older yachts, those located in areas at increased risk for lightning or catastrophic weather events, higher-speed vessels, and adverse loss history can have higher premiums. Superyachts, those over 80 feet, represent a subset of yacht risks, including crew considerations, navigational challenges, shipyard visits, and chartering.
10. The market can be divided into ocean, lakes, and rivers. Ocean is expected to hold the most boat insurance market share in the upcoming years.

Sources: Marsh McLennan Agency “2025 Yacht Risk & Resiliency Report,” Business Research Insights Boat Insurance Market Report, American Boating Association, Safe Boating Council, U.S. Coast Guard, Global Market Insights “Boat & Yacht Insurance Market Size – By Insurance, By Policy, By Sales Channel, By End Use, Analysis, Share, Growth Forecast, 2024 to 2032”

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