Is boat insurance included in my cottage insurance policy?

Many Ontario cottage owners assume their cottage insurance policy extends some level of coverage to the boat tied up at their dock. This assumption is understandable — the boat lives at the cottage, it is part of the cottage experience, and it seems logical that a comprehensive cottage policy would include it. Unfortunately, that assumption is generally wrong and can lead to a significant uninsured loss.

What Your Cottage Policy Covers (and Does Not)

A standard Ontario cottage insurance policy provides four core coverages: dwelling, contents, additional structures, and personal liability. Watercraft are not included in any of these categories for most policies.

Dwelling coverage applies to the cottage structure. Contents coverage applies to personal property inside the cottage. Additional structures covers docks, boathouses, sheds, and other outbuildings. None of these extend to watercraft.

Some cottage policies provide minimal liability coverage for very small, non-motorized watercraft — typically canoes, kayaks, and rowboats under a defined length or value threshold. This coverage, when available, usually provides third-party liability only — not physical damage to the watercraft itself. If your canoe causes damage to another boat or property, the liability portion may respond. If your canoe is stolen or damaged, you are generally uninsured under the cottage policy.

Motorized watercraft — including motorboats of any size, pontoon boats, personal watercraft (Sea-Doo, WaveRunner), and sailboats with auxiliary engines — are specifically excluded from virtually all cottage insurance policies. Neither physical damage to the vessel nor liability arising from its operation is covered.

Why You Need Separate Watercraft Insurance

A dedicated watercraft insurance policy provides coverage that your cottage policy cannot. Hull coverage protects against physical damage to the boat itself from collision, sinking, fire, theft, storm damage, and other covered perils. Liability coverage protects you if your boat causes injury to another person, damage to another vessel or dock, or environmental damage such as a fuel spill.

For cottage owners on Georgian Bay, Muskoka, and other busy Ontario waterways, boating liability exposure is real. Collisions with other vessels, dock damage at marinas, and injuries to passengers or water skiers can result in liability claims that exceed $100,000. Without a watercraft policy, you bear this exposure personally.

Watercraft insurance also typically covers the boat trailer, personal effects aboard the vessel (fishing gear, water sports equipment), and emergency towing. For cottage owners who keep their boat at the property year-round, winterized storage coverage protects the vessel when it is stored on land during the off-season.

Boats Stored in Boathouses

An area of frequent confusion is damage to a boat that is stored inside a boathouse. If the boathouse collapses due to a covered peril — heavy snow load, a fallen tree, or fire — your cottage policy covers the boathouse as an additional structure but generally does not cover the boat inside it. The boat’s damage would need to be claimed under a separate watercraft policy.

Similarly, if a boat is damaged by fire while stored on land adjacent to the cottage, the cottage policy covers the property and structures but not the watercraft.

This distinction reinforces the importance of maintaining a separate watercraft insurance policy for any boat you keep at your cottage. The cost of watercraft insurance in Ontario varies by boat type, value, horsepower, and use pattern, but it is typically a modest annual expense relative to the coverage it provides.

Contact Luca at 705-996-1116 to arrange watercraft insurance alongside your cottage policy and ensure both your property and your boat are properly covered.