Does Boat Insurance Cover a Blown Engine?

A blown engine is one of the most expensive problems a boat owner can face. Whether it happens suddenly on the water or develops after warning signs were missed, the first question is almost always the same:

Will my boat insurance cover this?

The answer depends less on the damage itself — and more on why the engine failed.

Here’s how boat insurance typically looks at blown engine claims.

Disclaimer: Boat insurance coverage varies by policy, carrier, and circumstances. The information below is general in nature and may not reflect the exact terms of your policy. Always review your policy documents or speak with a licensed insurance professional to understand your specific coverage.

What Does “Blown Engine” Usually Mean?

A blown engine isn’t a single failure — it’s a catch-all term that can include:

Severe overheating
Internal mechanical failure
Cracked engine block
Thrown rods or seized pistons
Water intrusion into the engine
Catastrophic breakdown requiring replacement

From an insurance standpoint, the cause of the failure matters more than the result.

When Boat Insurance Can Cover a Blown Engine

Boat insurance policies can include coverage for engine damage when the failure is caused by a sudden, accidental event.

Examples can include:

Striking a submerged object that damages the lower unit and engine
Water intrusion caused by a covered accident
Fire or explosion
Sudden mechanical damage directly tied to a covered loss

In these cases, engine damage may be considered part of a larger covered incident.

When a Blown Engine Is Usually Not Covered

This is where many claims are denied.

Boat insurance typically does not cover engine failure caused by:

Wear and tear
Lack of maintenance
Corrosion
Gradual deterioration
Manufacturer defects
Improper winterization
Running the engine after known damage
Overheating due to low oil or cooling failure

Even if the engine “blows” suddenly, insurers often look at whether the underlying cause was preventable or gradual.

Why Engine Claims Are Closely Reviewed

Engines fail over time — not all at once. Because of this, insurers often investigate:

Maintenance records
Prior mechanical issues
Oil levels and cooling systems
Whether warning signs were ignored
Whether the engine was operated after damage occurred

If the failure is linked to neglect or routine mechanical breakdown, coverage is often excluded.

Example Scenario

You’re cruising offshore when the engine suddenly loses power and shuts down. A mechanic later determines the engine seized due to internal damage.

If the failure resulted from water intrusion caused by a covered accident, insurance may help
If the damage resulted from overheating, oil loss, or maintenance issues, it’s typically excluded

The repair bill — often tens of thousands of dollars — depends entirely on how the loss is classified.

Does Boat Insurance Ever Cover Engine Replacement?

Boat insurance can include coverage for engine replacement when the engine is damaged as part of a covered loss.

However:

Deductibles apply
Depreciation may factor in for older engines
Coverage limits matter
Some policies have specific engine exclusions or sub-limits

This is why engine coverage should be reviewed before something goes wrong.

What To Do If Your Boat Engine Fails

If you experience engine failure:

Shut down immediately to prevent further damage
Document what happened (time, conditions, alarms, sounds)
Avoid restarting unless advised by a professional
Arrange towing if needed
Contact your insurer or agent early

Continuing to operate the boat can worsen damage and affect coverage.

Why This Matters for Boat Owners

Boat engines are complex, expensive, and vulnerable to:

Heat
Water
Corrosion
Improper operation

Many boat owners assume engine damage is covered — only to discover exclusions after the fact. Understanding where coverage begins and ends helps avoid costly surprises.