Why is homeowners insurance not enough coverage for my boat?

Standard homeowners policies provide very limited watercraft coverage, typically $1,500 in physical damage and no liability on the water. Any boat used regularly or worth more than $2,000 warrants a dedicated watercraft policy. Personal liability on your homeowners policy does not extend to boating accidents. A collision with another vessel or a water skier injury can easily produce a $200,000 claim, uncovered without a watercraft policy.