What is jetski insurance & why do I need it?

You might not have thought about jetski insurance, aka personal watercraft insurance, when you purchased your jetski, but it is a major necessity before you hit the water. Just as you insure your car and boat, you also need insurance for personal watercraft. The insurance policy issued for various watercraft differs in what it covers.

Jet ski Coverage

This type of policy does not cover liability of the operator. It covers more mundane, but necessary, items like towing, wreckage removal and fuel spill indemnification. Some jet ski policies apply depreciation using a set schedule. If an accident occurs, the amount of damage covered depends on the depreciation value. The policy may not cover the replacement cost of the jet ski. It may only cover the depreciated value. Read the policy carefully and inquire about depreciation. You may want to purchase a separate, replacement value policy that provides for a replacement watercraft if the incumbent becomes damaged.

Operation Area

It also may limit the operation area of the jet ski. If one operates the watercraft outside the given area, coverage is not maintained. Typically, a policy allows operation within inland waterways, lakes, rivers, and within a specified number of miles of the ocean shore. If your kids decide to try stunts in the swimming pool, the pool is not among the covered areas, so jetski insurance would not pay damages.


Review your home owner’s and auto insurance policies with your agent. The liability coverage of one of these may apply to the jet ski operation. If not, you can obtain separate liability insurance for it.

In Denver, CO, AFI Insurance can help you understand watercraft insurance and help you properly insure your jet ski for many years of enjoyment. It may take more than one policy to provide the appropriate coverage to give you peace of mind. In Denver, CO, AFI Insurance provides knowledgeable agents and a variety of coverage options to help you.