Ah, summer. It is the time of year when the non-landlubbers among us pine for the open seas. For them, few things compare to a day on the water.

Boating is an expensive hobby; even simple canoes can be pricey. And depending on what type of vessel you have got, there are some big risks involved. That is where insurance comes into play.

Although most of us groan when we think about the extra cost of an insurance policy, the dollars you spend covering you and your boat may go a long way to helping you enjoy yourself. Besides, some marinas and yacht clubs will not let you dock your boat unless you have got insurance on it.

Homeowners insurance policies usually include coverage for watercraft, but the coverage is often very limited. Typically, a homeowners insurance policy will pay up to $1,000 if something happens to your boat while it is at your house. The policy may even offer some liability coverage for you while you use your boat, but it is less than ideal.

The insurance industry generally places "watercraft" into three categories:

• Boats: Generally between 16 feet and 25 feet, 11 inches in length.
• Yachts: Generally 26 feet or greater in length.
• Personal watercraft: Jet skis, wave runners, and other personal watercraft.

All three types of vessels require different insurance coverage. As with many other types of insurance, policies vary quite a bit from company to company. If you are in the market for boat, yacht, or personal watercraft insurance, comparing different companies policies can be tricky. Read the policy carefully.

Most of the vessels that fall under the definition of "boat" are smaller powerboats and sailboats. Boat insurance typically covers physical damage and liability.

The physical damage coverage pays to repair or replace your boat if it is damaged or destroyed by fire, theft, lightning, vandalism, or windstorm. (Unlike homeowners insurance in many coastal areas, boat and yacht insurance covers damage from hurricanes and tornadoes.) Covered items include the boat itself, outboard motors, the boat trailer, and personal property kept aboard the boat. However, your personal effects — things that are not part of the normal operation of your boat — are not covered. Some companies offer separate coverage (at an added cost) for fishing equipment, cell phones, and computers that you use aboard the boat.

Liability coverage protects you if you are found responsible for damage to property or injury to someone other than you or a family member. So if you hit another boat or a guest is hurt aboard your boat, you would be covered. When it comes to boat insurance, liability coverage is often offered in $100,000 increments, up to $1 million. In our litigious society, it pays to have this coverage.

Sport-fishing boats, larger sailboats, and cruisers fall into the category of yachts. Much like boat insurance, yacht insurance offers two main types of coverage: property damage and liability. However, with yacht insurance, these are called hull coverage and property and indemnity coverage.

Hull coverage pays to repair your yacht if fire, theft, windstorm, lightning, or vandalism damages it. Basically, it covers the entire yacht, including sails, furniture, outboard motors, and machinery, anything used to operate or maintain the yacht. Some dinghies and trailers are covered under separate policy endorsements.

Protection and indemnity coverage pays if you are found liable for damage to property or injury to someone other than yourself or a family member. As with boat liability insurance, it is usually offered in $100,000 increments, but is also available at limits of more than $1 million.

Yacht owners can also buy what is known as a hurricane protection endorsement. That pays to haul your yacht out of the water if a hurricane watch or warning is issued. It also pays to put the ship back in after the hurricane has passed. The coverage would also pay the costs of hiring a professional to get your yacht to a safe harbor because of an impending hurricane.

One big difference between yacht and boat insurance is that yacht insurance often comes with several "warranties."

A navigational warranty restricts the operation of your yacht to a specific area. That means that your coverage only applies as long as you use the yacht in that region, which could be as large as the entire East coast or West coast, or as small as Chesapeake Bay.

The navigational warranty is used more as a rating factor, according to insurance sources. Companies will have different rates depending on which area you use. For example, theft and bad weather are big problems in Florida, so insurance will likely be more expensive. If you plan to take your yacht outside your navigational area, most companies offer what is known as a trip endorsement to expand your coverage.

Many yacht policies also include a lay-up warranty, which requires the ship to be out of commission for a specific period of time. In New England, for example, using your yacht in January is not practical. This warranty also allows you to get lower premiums, since the ship will not be in use year-round.

Getting insurance coverage for your jet ski can be more difficult. Many insurance companies will not cover these popular items unless there are part of a larger policy. Other insurers, such as Progressive, specialize in personal watercraft coverage.

One reason coverage can be difficult to obtain is the higher risks involved with jet skis. The majority of all boating accidents involve personal watercraft. Operator inexperience is to blame in almost all personal watercraft accidents.

If you own a personal watercraft, you would be wise to purchase insurance coverage that includes bodily injury, property damage, liability, and theft. The liability limits of these policies is typically $15,000, but can be increased to suit your needs.

Although the policies are different, boat and yacht insurance policies share many similarities. As we have already said, it is important to know what your policy does and does not cover, so read the policy carefully.

Yachts and boats less than 15 years old are typically insured on an "agreed value" basis. That means the insurer will pay you the full amount for which you are insured in case of a total loss. There is no depreciation deduction.

Vessels, like cars, lose value as they age. Insurance companies usually re-evaluate the market value of a boat every five years. That way, the coverage more accurately reflects your needs.

On the other hand, boats more than 15 years old are covered on an actual cash value basis. In that case, the insurance company would pay you what the boat is worth, minus depreciation, in case of a total loss. No matter the age of the vessel, insurance companies will only pay the actual cash value of some items, such as sails, covers, or outboard motors.

If you suffer a partial loss, the old, damaged item or items are usually replaced with new ones. Insurers sometimes refer to this as "new for old."

Both yacht and boat insurance can also include uninsured boat, towing, and medical payments coverages. If you are beginning to think we have gotten boat insurance mixed up with auto insurance, we have not. The two are not that different.

Uninsured boat coverage serves the same purpose as uninsured motorist coverage does in car insurance: to cover you in case the "other guy" does not have insurance. Medical payments coverage pays for medical costs incurred by someone on your boat. Towing coverage pays for the cost of having a commercial outfit tow your vessel back to port if it breaks down.

Boating is not usually an inexpensive hobby. With some knowledge and some prudent shopping, a boat, yacht, or personal watercraft insurance policy does not have to spoil your fun.

The cost of a policy depends on several factors, including the type of vessel (such powerboat, sailboat, performance, or pleasure cruiser), its size, age, where it will be used and even the boating experience of the operator. Laurence said age of the operator does not have any bearing on the cost of the policy. Instead, it is experience that counts. Insurers put a lot of weight on previous boat ownership, so if you have owned a boat before, it will likely cost you less to get a policy.

According to the Insurance Information Institute, insuring a 25-foot speedboat worth between $20,000 and $25,000 would cost between $500 and $900 for physical damage coverage and about $5,000 for liability coverage. Before your eyes bug out any further, keep in mind that speedboats will be on the high end of the scale. A similarly sized sailboat might cost 25 percent to 50 percent less to insure. Just as sports cars are more expensive to insure than sedans, fast powerboats will cost more to insure than sailboats.

There is plenty you can do to keep your insurance costs down. For one, you can (and should) take an approved boating safety course. These are offered around the country by the U.S. Coast Guard Auxiliary and the U.S. Power Squadrons, and can give you a premium discount of anywhere from 5 percent to 20 percent. In some states, you are required to take one of these courses to operate a boat.

Premium discounts are also usually available for newer boats, protective devices (like a depth finder, ship-to-shore radio, or burglar alarm) and for getting your vessel inspected by the Coast Guard Auxiliary. Some companies even offer discounts for vessels powered by diesel engines.

As with any insurance policy, higher deductibles can lower your premiums. Deductibles for watercraft policies range from 1 percent to 10 percent of the coverage. So if you have $20,000 in coverage, a 1 percent deductible would be $200. Before you opt for a higher deductible, you should make sure you can afford to pay it.

Still planning to get out on the water soon? When you do, do not forget your sunscreen and life preservers. Couple those with an insurance policy and they will keep you from getting burned and keep you afloat.