Owning a boat for pleasure is a popular hobby. If you are thinking about purchasing a boat in your area, talk to the harbor master at your local marina and the U.S. Coast Guard for information and advice. Do some research on financing and boat insurance as well.

Marine Loans
Marine loans are secured by the boat and offer a fixed interest rate throughout the 20-year life of the loan. The maximum loan amount is generally $500,000. The required down payment can be as low as 10 percent. Any boat that is longer than 27 feet must be federally documented, and all loans must be filed with the U.S. Coast Guard.

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

The insurance industry generally divides "watercraft" into three categories

boats generally between 16 feet and 25 feet, 11 inches long
yachts generally 26 feet or longer
personal watercraft jet skis, wave runners, and other personal watercraft

All three types of vessels require different insurance coverage. However, you should carry at least $50,000 of liability insurance. As with many other types of insurance, policies vary quite a bit from company to company. Ask for details before you make a commitment.