An acrylate-modified tung-oil waterborne insulation varnish was synthesized from tung oil, maleic anhydride, and acrylates via a Diels-Alder reaction and free-radical polymerization, and the varnish could be solidified at a relatively low temperature with blocked hexamethylene diisocyanate as a curing agent. The resulting films were characterized by Fourier transform infrared spectroscopy, thermogravimetric analysis, and differential scanning calorimetry. The insulation properties (electrical insulation strength, volume resistivity, and surface resistivity) of the varnish films were tested, and the resistances of films to salted water were evaluated. With an increase in the maleic anhydride content, the thermal stability of the film was improved, whereas the electrical insulation strength, volume resistivity, and surface resistivity decreased. The electrical insulation strength of the film after it was immersed in the NaCl solution was lower than that in dry state, and it decreased as the immersed time was prolonged. In particular, the electrical insulation strength loss of the film increased significantly at maleic anhydride contents beyond 25 wt %. Furthermore, the hardness of the film increased with increasing methyl methacrylate/N-butyl acrylate ratio, whereas the flexibility and adhesion of film decreased to a certain degree at the same time.