Federal law requires all vessels propelled by machinery (with the
exception of racing vessels and tenders under 10 hp) to be
registered with the state of principal use if that state has an
approved numbering system, or with the Coast Guard. A certificate of
number is issued upon registering the vessel. Federal law requires
the registration certificate to be on board whenever the boat is in
use. When the boat is moved to a new state of principal use, the
certificate is valid for at least 60 days. State laws vary. Various
Boat Insurance policies provide coverage for the hull and machinery
--engines, outboards, generators, etc., equipment and accessories
used in the normal navigation, safety and maintenance of the boat,
as well as any furnishings built into the boat. The liability
section of the policy is called Protection and Indemnity (P&I).
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