As a responsible boat owner, it's important to make sure you are properly insured before you head out on the water. Fortunately, there are literally hundreds of insurance companies throughout the U.S. that specialize in marine insurance. Many of the nation's major insurers provide policies for boats, yachts, and other watercraft in addition to standard life, auto, and homeowners insurance.Insuring your boat with the same company that issued your auto, life, or home insurance can have certain advantages. For instance, you may be eligible for a multi-policy discount. If your current insurer doesn't offer insurance for watercraft, you'll need to do some research. You can find many listings simply by looking in the Yellow Pages or on the Internet, or you can ask your insurance agent for a referral. Before you contact an insurance agent about boat insurance, make sure you know what type of policy you need. In the insurance world, watercraft are typically divided into three categories:Boats. Generally include watercraft between 16' and 25' 11" in lengthYachts. Generally include only watercraft which are 26' or longerPersonal watercraft. Includes only jet skis, Waverunners, and other similar craftA boat policy is a package contract, similar in many ways to automobile insurance. While there may be some variation in boat policies, the main types of coverage are physical damage and liability coverage. Many boat policies also include legal defense protection, medical payments coverage, and uninsured boater coverage.A yacht policy is very similar to a boat policy, in that it provides coverage for physical damage to your vessel and for personal liability claims against you. However, in a yacht insurance policy, these coverages are called "hull insurance" and "property and indemnity coverage." Yacht owners can also purchase optional coverage for legal defense, medical payments and uninsured boaters. In addition, yacht owners have the option of purchasing a hurricane protection endorsement, which will pay to haul your yacht out of the water if a hurricane is approaching and put it back in the water after the hurricane has passed.If you own a personal watercraft, you might actually have a difficult time insuring it. Many insurers refuse to insure these craft, because they pose a much greater liability risk than other types of watercraft. According to some statistics, 45 percent of all boating accidents involve personal watercraft. However, certain insurance companies now specialize in insuring personal watercraft, because of their ever-increasing popularity. If you own a personal watercraft, make sure you purchase an insurance policy that includes bodily injury, property damage, liability, and theft coverage.