DEFINITION of 'Watercraft Nonowned Insurance '
A type of financial safeguard that covers marine vessels that are owned by someone other than the policyholder while they are being operated by the policyholder. Watercraft nonowned insurance is a type of property and casualty insurance, meaning that it covers physical property belonging to a person or business. Depending on the specific policy, watercraft nonowned insurance may cover physical damage, legal liability or both.
BREAKING DOWN 'Watercraft Nonowned Insurance '
For example, if the holder of a watercraft insurance policy borrowed a friend's boat, they would want to make sure their policy covered nonowned watercraft in case they had an accident while operating it. If the basic watercraft insurance policy does not include this coverage, it may be possible to add it via an endorsement or rider.