Hull coverage, Property Damage Coverage
Normally this covers your vessel and includes spars, sails, machinery, furniture, dinghies, outboard motors, fittings and other equipment normally required for the operation and maintenance of the vessel.
Most policies provide coverage on an "all risk" basis, but don't let them mislead you. There are still exclusions, and coverage may not be provided in the event of dishonest or illegal acts, intentional acts, concealment, misrepresentation, fraud, etc.
Losses under and all-risk policy may be settled on an "agreed value" basis, with no deduction for depreciation, or on an "actual cash value" basis, where depreciation is taken into account. Your agent can help you decide which is right for your needs, but be forewarned that even under an "agreed value" contract, some items still are depreciated in the event of partial loss.
Liability Coverage, Protection & Indemnity (P&I)
This covers sums which you or a covered person may become legally obligated to pay as the result of the ownership, operation, or maintenance of the vessel because of:
- Loss or damage to any property
- Bodily injury or loss of life
- Removal of the wreck of your vessel
- Failure to remove the wreck of your vessel
- Your liability to paid crew members
- Medical Payments
This coverage pays for necessary and reasonable medical, ambulance, hospital, professional nursing and funeral expenses for persons injured in, upon, boarding or leaving the insured vessel. Most policies include some medical payments coverage, with an option to buy increased limits. Some increase the limits as the value of the vessel increases with no extra charge.
Uninsured Boater
This covers the damages that, because of bodily injury received aboard your vessel, you may be legally entitled to recover from the uninsured owner or operator of another boat. Most major companies include or can add this coverage to the policy. Increased limits are usually available for an additional premium. Some companies increase the limit as a function of the protection & Indemnity limit of liability.
Personal Property coverage/Personal Effects Coverage
This covers clothing, personal effects, fishing gear and sports equipment that belongs to you or members of your family while these items are onboard your boat or are being loaded or unloaded. Basic limits for this coverage are normally included with the option to buy increased limits. Some companies increase limits based on the hull's value.
Commercial Towing and Assistance
The United States Coast Guard no longer provides towing as it used to. As it stands now - if your boat is not in imminent danger but you are still in an emergency situation and not in safe harbor - you'll be referred to a commercial towing company. Towing and assistance coverage is an inexpensive as well as comforting policy feature. Most companies include basic limits with an option to buy increased limits. Some companies increase the limits as a function of the hull value.
Special Coverage
If you request coverages that may not be classified as "standard," here are some helpful hints on how to obtain them. Let's say you're planning an extended trip outside of your normal navigation limits. You'll probably need additional coverages, which your agent can recommend.
To help obtain the coverage, you'll need to provide the insurance company with data - which usually starts with the intended ports of call and a "crew resume" for everyone making the trip. A trip survey will probably be requested to verify that the vessel is properly equipped to make the intended voyage. There may be additional information depending upon the length of the trip and when the trip will be made. Give your insurer plenty of advance notice so you will be able to gather the requested information & they will be able to evaluate it.
Pollution coverage
You may want to ask your agent about pollution coverage. Some companies do not provide it even if you want it, or more importantly, need it.
Consider the Added Value
Make sure your final decision on an insurance company is based on an "apples" to "apples" comparison of coverages. Also look at the value-added items the company offers, such as a marine specialty company with marine underwriters, marine surveyors, and marine claims and recovery personal.
