Can You Insure a Boat with a Salvage Title? Guide for Salvaged and Totaled Boats

A boat with a salvage title can be a tempting purchase, often available at a fraction of its original value. But the biggest question many buyers face is: can you insure a boat with a salvage title?

The answer isn’t straightforward. While it is possible in some cases – securing insurance for a salvage boat comes with significant challenges. Insurers view these vessels as high-risk, which means limited coverage options, higher premiums, and stricter requirements.

In this guide, we’ll explore what a salvage title means and the things to consider when obtaining insurance.

What is a Salvage Title on a Boat?

Several states, including Florida, California, Colorado, and Connecticut, issue salvage titles for boats. A salvage title is issued when a boat has been declared a total loss due to extensive damage. This designation typically comes from an insurance company after an accident, storm damage, or another catastrophic event.

While some salvage boats can be repaired and returned to the water safely, the designation may significantly impact their resale value and insurability. Even after extensive restoration, a boat with a salvage title may never be worth as much as a similar vessel with a clean title.

Buying a Salvage Title Boat – What to Know

Purchasing a salvage title boat can be a cost-effective way to get on the water, but it’s not without risks. These boats often sell for a fraction of their original price, making them attractive to budget-conscious buyers.

However, hidden damages, high repair costs, and insurance difficulties can quickly outweigh the initial savings. For buyers considering a salvage boat, research is essential. Attending auctions in person allows you to assess the boat’s condition firsthand.

Asking for full damage and repair history is also critical, as some boats may have undergone extensive—but inadequate—restorations. Understanding the full extent of its history will help determine if a salvage boat is worth the investment. Consider investing in a survey from a professional marine surveyor to fully understand the damage to and needs of the vessel you are looking at.

Can You Insure a Boat with a Salvage Title?

Yes, insuring a salvage title boat is possible but challenging. It often involves higher premiums, limited coverage, and stricter requirements. A thorough marine survey and detailed repair records can help prove seaworthiness. Boat buyers should research state laws and insurance options before purchasing a salvage title vessel.

Many insurance providers outright refuse to cover them due to the unknown extent of previous damage and the increased likelihood of future issues.

Some may only offer liability coverage, leaving boat owners without protection for physical damage, theft, or total loss.

For those that do provide coverage, premiums are often significantly higher; the cost reflects the increased risk of mechanical failure or structural weaknesses that may not be immediately visible.

Boat Insurance Policy Considerations

It’s important to understand what coverage may be available to insure a salvage title boat. Liability insurance, which protects against damages or injuries caused to others, is generally easier to obtain than full coverage. Some policies offer wreck removal coverage, which can be useful in case of sinking or accidents.

However, many standard policies exclude coverage for damage resulting from wear and tear, corrosion, or pre-existing issues. Boat owners must carefully read policy terms to avoid unexpected expenses.

Knowing exactly what is covered—and more importantly, what isn’t—can make the difference between a manageable incident and a costly financial burden.

One of the most important proactive steps to take towards a policy is to obtain a thorough marine survey. A certified marine surveyor can assess the boat’s condition and provide a detailed report, which can help prove its seaworthiness to insurers.

Additionally, keeping detailed records of all repairs, upgrades, and maintenance work will work in your favor when seeking coverage.

Sea Tow Team

Sea Tow has been the premier leader in on-water boating assistance since 1983. We want to share news, press, tips and all things boating.