The primary difference between Agreed Value and Actual Cash Value is the method of reimbursement at the time of a total loss. An Agreed Value policy will pay the full insured value. There is no depreciation for total loss. Under an Actual Cash Value policy the vessel is depreciated at the time of loss, and therefore, you may not receive the full value listed on your policy.

What’s covered in the hull value of my policy?

The hull value includes all the machinery and equipment that is used to operate and maintain the vessel. It does not include auxiliary equipment such as trailers, fishing tackle, scuba gear, dinghies, and outboard motors. Auxiliary equipment is endorsed separately. With Agreed Value policies, the hull value is what you will be paid should there be a total loss.

Am I covered for a Hurricane?

Yes. There are no exclusions for hurricanes. However, the companies have reduced their exposure to hurricanes by limiting navigation in hurricane prone areas. Make sure that you have not breached the navigational warranty of your policy to avoid a lapse in coverage.

What is Hurricane Protection?

Under some policies, an optional Hurricane Protection endorsement is available. If your vessel is in a hurricane watch or warning area, the company will share in the cost to haul and launch the vessel or have the boat moved professionally to a safe harbor. The most they will pay is $500 per occurrence and $1,000 per policy period.

Why are surveys required?

Surveys protect your investment by identifying safety and maintenance problems. It is prudent to keep your vessel operating safely so that you can avoid disaster. An independent marine surveyor works on your behalf to identify and suggest solutions to keep your vessel in top condition. Surveying a vessel is a standard practice for the used boat buyer, and it is also mandatory for insuring older vessels. The insurance underwriters rely on the third party expertise of the surveyor to understand the condition and value of the boat.

How can I reduce my hull premium?

There are a number of credits available to reduce your premiums. Reviewing your insurance program with an Independent agent who is a Marine Insurance Specialist is the first step to getting the best value. Cost saving items include increasing the deductible, limiting navigation, extending the lay-up period, boating safety courses, and having safety devices on board your vessel.

What is the Jones Act?

The Jones Act is a US federal statute that applies to US flag vessels. It provides a means for crew members, who are injured as a result of negligence, to recover for damages caused by injury. It is the maritime version of workers compensation. If you employ any crew, then you should have an endorsement added to your policy to protect you from possible liability.

Does my policy provide for towing?

When your vessel is disabled and you require assistance to return to safe harbor, then the Commercial Towing portion of the policy provides the coverage. Most policies do include towing.

Does my policy include coverage for the tender?

Some policies will include a dinghy and outboard motor at no additional cost. Others require an endorsement which schedules the additional equipment. Dinghies and outboards are insured on an Actual Cash Value basis. The deductible for dingies and outboards is usually $100.