Marine Insurance: Protecting Your Watercraft

Marine insurance is a specialized type designed to cover physical loss or damage to boats, yachts, sailboats, and other types of watercraft. Understanding marine insurance is crucial to safeguarding your investment if you own any of these.

What Does Marine Insurance Cover?

Marine insurance policies typically include the following coverages:

• Hull & Machinery: Protection for the main structure and machinery of the boat.
• Auxiliary Motors: Coverage for additional motors used on the boat.
• Tenders: Insurance for small boats or dinghies used to service the main vessel.
• Personal Effects: Coverage for personal items stored on the boat.
• Boat Trailer: Protection for the trailer used to transport the boat.
• P&I Liability (Protection and Indemnity): Covers legal liabilities, including bodily injury and property damage to others.
• Underinsured Boater Protection: Coverage if you’re involved in an accident with a boater who does not have sufficient insurance.

Exclusions and Limitations

Marine insurance policies come with certain exclusions and limitations. These can vary, but commonly include the type of valuation used for the boat:

• Actual Cash Value (ACV): This policy pays the replacement value of the boat minus depreciation. Factors like the current market value, condition before the damage, resale value, normal life expectancy, and obsolescence are considered when calculating ACV.
• Agreed Value: In this policy, the insurer and the boat owner agree on the boat’s value at the time the policy is written. This amount is what the owner will receive in the event of a total loss, as stated on the policy declaration page.

Covered Risks

Marine insurance provides coverage against a variety of risks, including:

• Natural disasters
• Theft
• Accidents

Additional Benefits and Services

Beyond the standard coverages, marine insurance policies often include additional benefits and services:

• Emergency Towing: Coverage for towing services if your boat becomes disabled.
• Medical Benefits: Payments for medical expenses resulting from a boating accident.
• Search and Rescue: Costs associated with search and rescue operations.
• Accidental Death Benefits: Financial support in the event of accidental death while boating.
• Deductible Forgiveness: If a third party is at fault, the deductible may be waived.

Learn more about Marine insurance by connecting with one of our knowledgeable brokers today at 1-866-674-2816 ext. 805 or by filling out the form below.