I moved onto my 40-foot trawler full-time to save rent. I kept my standard boat insurance policy. Last week, a galley fire gutted the interior. The adjuster asked for my “permanent shore address.” When I admitted I didn’t have one and lived aboard, he closed the notebook. “This policy is for recreational use only. You are in breach of contract.”
Key Takeaways
- Recreational vs. Primary Residence: Standard boat policies assume you use the boat on weekends. Living aboard increases the risk of fire, liability, and wear and tear by 1000%.
- The “Liveaboard Endorsement”: You must declare “Liveaboard” status. It typically raises the premium by 30-50% and requires a rigorous survey.
- Contents Coverage: A standard boat policy covers “Personal Effects” up to maybe $5,000 (fishing gear, clothes). It does not cover your entire life’s possessions (laptops, jewelry, furniture) unless you have a Liveaboard Rider with high contents limits.
- Marina Eviction: Marinas usually require proof of “Liveaboard Liability” coverage. If your policy is recreational, you are violating your slip lease.
The “Why” (The Trap)
The trap is “Material Misrepresentation.”
By failing to tell the insurer you live on the boat, you hid a material fact. This allows them to void the policy back to the inception date (Rescission). It’s as if you never had insurance.
The Investigation (I Quoted Liveaboard)
I tried to insure a 1990 Trawler as a home.
Progressive
- Stance: Very strict. They often decline liveaboards on older vessels. They require a permanent shore address for correspondence.
Markel
- Stance: The go-to for liveaboards.
- Requirements: Recent out-of-water survey, photos of the galley/heaters, and a clean resume.
- Coverage: Offers higher Personal Effects limits (e.g., $20,000).
BoatUS
- Stance: Generally accepts liveaboards if you have good experience, but premiums are higher.
Comparison Table
| Feature | Recreational Policy | Liveaboard Policy |
| Usage | Weekends/Vacation | Primary Residence |
| Personal Effects Limit | ~$2,500 | ~$10,000+ |
| Survey Requirement | Every 5-10 years | Every 3-5 years |
| Cost | $1,200/yr | $2,000/yr |
Step-by-Step Action Plan
- Call a Specialist Broker: Don’t use a website. Call a broker who specializes in “Cruisers” (e.g., Hugo Hanham-Gross or similar).
- Get a Haul-Out Survey: You cannot get liveaboard coverage without a survey less than 12 months old.
- [IMAGE: Photo of a marine surveyor inspecting a hull with a moisture meter]
- Inventory Your Stuff: Your “contents” limit is likely too low. Add up your clothes, electronics, and galley gear. Buy a “Personal Property” rider.
- Rent a PO Box: Never tell the insurer you have “no shore address.” Use a family member’s address or a mail service for the paperwork.
FAQ
Does Renters Insurance cover my boat stuff?
No. Renters insurance excludes motorized vehicles/vessels.
Can I live on it part-time?
Yes, but define “part-time.” If you sleep there >15 nights a month, tell the insurer.