Boat Insurance in Vermont: Lake Champlain, Wakeboats and Inland Lakes

By Jon Merwin, Founder and CEO

Vermont boating centers on one very large lake and dozens of smaller ones. Lake Champlain runs from Whitehall, New York to the Quebec border, with Burlington, Shelburne Bay, Mallets Bay and the Champlain Islands on the Vermont side. Lake Memphremagog crosses into Canada. Then come the inland lakes and ponds: Bomoseen, Willoughby, Caspian, Fairlee and Morey, Dunmore, St. Catherine, Seymour and the southern reservoirs. Each has its own crowd, its own boats and its own rules.

Portsmouth Atlantic Insurance is a family-run independent agency in Portsmouth, NH, licensed in Vermont. We have written boats since 2005, work with 40+ carriers across all lines, and help Vermont boaters by phone and email. Call (603) 431-4020.

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Registering a boat in Vermont

Motorboats used on Vermont waters are registered with the Department of Motor Vehicles on form VD-037, with a title or a bill of sale and proof of ownership (Vermont DMV, registering your motorboat). Vermont sorts motorboats into classes by length: Class A under 16 feet, Class 1 from 16 to under 26 feet, Class 2 from 26 to under 40 feet, and Class 3 for 40 feet and over (23 V.S.A. §3304).

The registration shows where the boat is principally used, which is the same thing a boat carrier wants to know. If you live in New Hampshire or Massachusetts but keep the boat at a camp on Lake Fairlee or a slip in Burlington, tell us so the policy lists the right location and waters.

The boating safety course rule

In Vermont, anyone born after January 1, 1974 must complete a boating safety course approved by the state and carry the certificate while operating a motorboat, and that includes personal watercraft (23 V.S.A. §3305b; Vermont Fish and Wildlife boating). Certificates from other states that meet national standards are generally accepted.

For a boat policy, every regular operator should be named. Carriers ask about age, experience and the boats each person has run. A teenager driving a tow boat at a family camp is a very different risk from an adult who has run the same boat for twenty seasons, and the application should say who actually drives.

Wakeboats and wakesport zones

Vermont’s wakeboat rule took effect on April 15, 2024 (Vermont DEC announcement). Wakesports, meaning activities such as wake surfing behind a boat designed or ballasted to make a large wake, are allowed only in designated wakesport zones (Vermont DEC wakeboat page). Key points:

• Limited lakes. Zones exist on 30 inland lakes plus Lake Champlain, Lake Memphremagog, Wallace Pond and certain river reservoirs on the New Hampshire border.
• Zone size. A zone must cover at least 50 contiguous acres of water at least 20 feet deep, at least 200 feet wide and at least 500 feet from shore.
• A home lake. Each wakeboat must declare one home lake per year and display a decal. Using it for wakesports on a different lake requires decontamination first, to slow the spread of invasive species.

Wakes cause real damage: swamped small boats, injured swimmers, battered docks and eroded shoreline. A wakeboat owner’s liability coverage should be solid, and the umbrella above it should be sized to match. Tell the carrier the make and model, any ballast or wake-shaping system, and whether people ride behind the boat. Most boat policies treat water skiers, tubers and wake surfers as people the policy can protect, but the terms vary.

Lake Champlain: high water, ice and wind

Lake Champlain behaves more like an inland sea than a pond. In the spring of 2011, snowmelt and heavy rain pushed the lake to a record 103.27 feet at Burlington on May 6, and it stayed above flood stage for 67 days (Lake Champlain Basin Program; U.S. Geological Survey). Docks, boathouses, seawalls and shoreline camps from the Islands to Shelburne were damaged, and the Burlington ferry dock on King Street flooded.

That history matters for waterfront owners. The NFIP Standard Flood Insurance Policy excludes docks, piers, boathouses and bulkheads (44 CFR Part 61, Appendix A(1)), and homeowners policies exclude flood. Floating docks, lifts and moorings are often not part of a boat policy either. On Champlain, other recurring risks include:

• Wind and waves. The long fetch of the broad lake can build steep seas quickly, especially in the late afternoon and in fall.
• Ice and ice shove. Docks and lifts left in over the winter can be torn apart by moving ice.
• Haul-out timing. Most boats come out in the fall, so the policy should cover the boat on a trailer, on stands or in a storage building.
• Navigation. If you cruise to the Richelieu or the New York shore, confirm the navigation area and follow the border reporting rules.

Inland lakes and camps

Many Vermont boats live at a family camp: a pontoon on Lake Bomoseen, a ski boat on Lake Dunmore or a fishing boat on Willoughby. These boats sit on lifts or trailers through long stretches of the summer while nobody is there. Ask about theft and vandalism coverage, lift damage, and how the boat is covered during transport between lakes. Keep the camp and the boat on the same review; our guides to Vermont second homes and Vermont ski houses cover the house.

Older boats, pontoons and surveys

Vermont lakes are full of boats that have been in the family for decades: wooden runabouts on Lake Willoughby, aluminum fishing boats on Seymour, pontoons that have seen thirty summers at the same camp. Older boats can be insured, but carriers ask more questions. Expect to be asked for:

• A marine survey on older or higher-value boats, especially for agreed value coverage. The surveyor documents condition and value, and the carrier uses that report to set the hull amount.
• Engine details, including the year, horsepower and whether the motor has been repowered.
• Maintenance and storage history. Where the boat spends the winter and who services it.
• Photos, particularly of wooden or restored boats, where the craftsmanship is part of the value.

A restored classic is closer to a collector car than a fishing boat, and some policies are built for that. Tell us what the boat means to you as well as what it is worth, and we will look for coverage that treats it that way.

Invasive species and moving between lakes

Vermont works hard to keep aquatic invasive species such as zebra mussels and Eurasian watermilfoil from spreading between lakes. Boaters are expected to clean, drain and dry their boats and trailers before moving to another body of water, and greeters at many launches inspect boats on the way in. The wakeboat rule adds a formal decontamination step for wakeboats that change lakes.

This matters for insurance in two ways. First, damage from zebra mussels or other marine growth is usually treated as wear and tear, not a covered loss, so keeping hulls and cooling systems clean is part of protecting the boat. Second, a boat that moves between Champlain, inland lakes and New Hampshire waters spends more time on the road, so check how the policy covers the boat and trailer in transit.

Fishing, tournaments and guests

Lake Champlain draws bass and salmon anglers from across the Northeast, and many Vermont boats are fishing boats first. If you fish tournaments, tell us; some policies ask about tournament use and fishing gear limits. If friends or relatives regularly borrow the boat, check who the policy allows to drive it and whether they meet the boating safety rule. And if anyone ever pays you to take them fishing, that is guiding, which needs commercial coverage.

What to look for in a Vermont boat policy

• Agreed value or actual cash value. Agreed value fixes the hull amount up front; actual cash value deducts depreciation at the time of loss.
• Liability. Bodily injury and property damage to others. Set it with your umbrella in mind.
• Uninsured boater. Covers injuries caused by a boater who has no insurance.
• Medical payments. Pays treatment for people injured aboard, up to the limit.
• Towing and assistance. On-water help when the engine quits a long way from the launch.
• Trailer. Physical damage to the trailer and how the boat is covered on the road.
• Personal effects and gear. Electronics, fishing tackle and wakeboards often have separate limits.
• Wreck removal and fuel spills. Cleanup of a sunken boat or spilled fuel can be costly.

For more background, read how boat insurance works and our boat safety tips. Personal watercraft are covered on our powersports insurance page.

Carriers for Vermont boats

Hanover writes boats in every state where we are licensed, including Vermont, and we look at Chubb for high-value boats. Other boat carriers on our list may also be options, depending on the boat, its value and where it is kept; we confirm availability for each Vermont boat when we quote. Boats used for charters, rentals or guiding are commercial risks and are not covered here. Our main boat insurance page explains the general approach.

A personal umbrella sits on top of the boat, home and auto policies. Umbrella carriers set a minimum liability limit for the boat underneath, and we line those limits up when we write the account. If you also own a home in New Hampshire, our Hanover, NH high-value home page and our high-value home insurance page cover the house side.

Vermont boat checklist for spring

• Renew the DMV registration and check the decals.
• Make sure every operator born after January 1, 1974 has a boating safety certificate.
• Declare a home lake and get the decal if you own a wakeboat.
• Check docks, lifts and moorings after ice-out.
• Update hull value and deductibles.
• Confirm the navigation area if you will cross into New York or Quebec.
• Match boat liability to your umbrella.

Related coverage: see our guide to Maine boat insurance.

Request a Vermont boat quote

Tell us the boat’s year, make, length, engine and hull ID, the lake where it lives and who drives it. Request a quote. There’s no obligation to buy. Fill out the form below, open our quotes page, or phone (603) 431-4020 between 9 and 5 Monday through Thursday or 8 and 4 on Friday, Eastern. We don’t charge any fees. See what clients say in 1,000+ Google reviews and over 2,000 testimonials on our client feedback page.

Frequently asked questions

Is boat insurance required in Vermont?

Vermont does not require every boat owner to carry boat insurance. Lenders do require it on financed boats, and most marinas, yacht clubs and storage yards ask for proof of liability coverage. Because a single accident on a crowded lake can lead to injury claims, most owners carry it whether anyone asks or not.

Who needs a boating safety certificate in Vermont?

Anyone born after January 1, 1974 must complete an approved boating safety course and carry the certificate to operate a motorboat, including a personal watercraft, on Vermont waters. List every operator on your boat policy, including family members and regular guests.

What is Vermont’s wakeboat rule?

Since April 15, 2024, wakesports such as wake surfing behind a wakeboat are allowed only in designated wakesport zones on a limited set of lakes, including Lake Champlain and Lake Memphremagog. Each wakeboat must choose a home lake for the year, and moving to another lake requires decontamination first. Tell your carrier if you own a wakeboat and how you use it.

Does my boat policy cover me in Canadian or New York waters?

It depends on the navigation area in the policy. Lake Champlain borders New York and Quebec, and most of Lake Memphremagog is in Quebec. Confirm that the policy covers every place you boat, and follow the border reporting rules when you cross.

Does flood insurance cover my dock on Lake Champlain?

No. The NFIP flood policy excludes docks, piers, boathouses and similar structures, and homeowners policies exclude flood. Ask how your homeowners and boat policies treat docks, lifts and moorings for other causes of loss.

What is agreed value on a Vermont boat policy?

It is the hull amount you and the carrier agree on when the policy is written. If the boat is a covered total loss, the policy pays that amount less the deductible, instead of a depreciated value worked out after the loss.

Which carriers write boat insurance for Vermont boaters?

Hanover writes boats in every state where we are licensed, and we look at Chubb for high-value boats. Other boat carriers depend on the boat and where it is kept. Call (603) 431-4020. Request a quote. There’s no obligation to buy.

Sources

• Vermont DMV, registering your motorboat
• 23 V.S.A. §3304, motorboat classes
• 23 V.S.A. §3305b, boating safety education
• Vermont Fish and Wildlife, boating in Vermont
• Vermont DEC, wakeboats and wakesport zones
• Vermont DEC, wakeboat rule takes effect for 2024
• Lake Champlain Basin Program, the floods of 2011
• U.S. Geological Survey, Lake Champlain flood report
• 44 CFR Part 61, Appendix A(1), Standard Flood Insurance Policy

General information for Vermont boat owners. It is not a quote, a binder or legal advice. Coverage depends on the policy wording and each carrier’s underwriting, and state rules change; confirm current requirements with Vermont DMV, Fish and Wildlife and DEC.