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Marine Insurance > Basics

Hull Coverage:
Insures the hull along with its machinery, sails, and other boat related equipment. If you have a tender which is used with your boat, it may be included in the basic hull coverage.

Agreed Value vs. Actual Cash Value:
Agreed Value is the fair market value for a vessel that is agreed upon by the insured and the insurance company when the policy is issued. In the event that you suffer a total loss, a policy with an Agreed Value will pay the value stated on your policy, with no deduction for depreciation. A policy with an Actual Cash Value valuation will apply depreciation at the time of loss, often paying you much less than is shown on the policy.

Protection & Indemnity (P&I) vs. Watercraft Liability:
Protection and Indemnity liability provides liability coverage for you against injuries to your hired crew. P&I also covers wreck removal, negligence for an unseaworthy vessel, as well as bodily injury and property damage. P&I is the broadest liability coverage available. Standard limits range from $100,000 to $1 million, although higher limits are available. Watercraft Liability only provides coverage for bodily injury and property damage.

All Risk vs. Specified Perils:
All risk coverage provides coverage for any loss unless it is specifically excluded on the policy. Specified Perils Policy provides coverage for only specific losses listed on the policy.

Navigation Limits:
The part of your policy that states where you will navigate your vessel. Did you know your insurance coverage can be void if you have a loss outside of the stated navigational limits on your policy? Do you have the navigational limits that you need?

Deductible:
The amount of a loss that you must pay before the insurance company has any obligation to pay. Premiums will go up or down depending upon the amount of your deductible. Higher deductibles mean lower annual premiums. Lower deductibles may apply to electronics, personal property, and tenders. Windstorm deductibles are often higher than deductibles for other losses.

Lay-Up Periods:
Premiums can also be reduced if your policy includes a lay-up period. A lay-up period is a time period when the boat will not be used. Longer lay-up periods will result in lower annual premiums.

Other Coverages in a yacht policy may include medical payments, personal effects, uninsured boater, towing, Jones Act coverage, and more.

Credits can be given for completion of boating safety courses and for having safety equipment onboard your vessel. Our staff will be happy to discuss any questions you may have about your policy to make sure you are adequately covered.

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