A self-adjusting watercraft canopy/cover assembly having a protective cover and a floating watercraft lift. The lift includes a watercraft lifting support and a float attached to the watercraft lifting support for supporting the watercraft lifting support on a body of water. The float is movable to selectively lift and lower the watercraft lifting support relative to the body of water along a first path of movement. The lift further includes an assembly which causes the protective cover to move along a second path of movement different from the first path in response to movement of the float.