Basic marine insurance will protect you in the event of loss or damage. This insurance covers non-commercial vessels such as yachts, sailboats, private fishing boats, cruise boats, and related leisure boats. Other small ships, such as canoes and kayaks, are not covered by marine insurance but can be covered by your extended home insurance.

What Does Marine Insurance Cover?

Typical coverage under a basic marine insurance policy includes:

• Collision: this will cover the repairs or replacement of your boat in the event of a crash if you’re at fault.
• Comprehensive: this will cover you if your boat is stolen, damaged, or vandalized.
• Property Damage & Liability: coverage for damage caused by you to another boat, property, or structure.
• Bodily Injury Liability: Liability coverage that will protect you if you injure someone while using your boat or if someone is injured while on your boat.

Can I Get Additional Coverage?

You may want to add coverage to your policy, which could include the following:

• Property Damage: coverage for damage done to someone else’s property, be it their dock, boat, or other property.
• Pollution Liability: pollution liability will protect you if an oil, chemical, or other waste spills from your vessel.
• Extra Expenses: if your boat is damaged because of a loss covered by this policy, you will be reimbursed for reasonable out-of-pocket lodging and transportation expenses you incur due to the loss of use of your boat.
• Wreck Removal: this covers the costs that result from the attempted or actual raising, removal, or destruction of the wreck of your boat.
• Rental Expense: if your boat is damaged in the event of a covered loss, you will be reimbursed for the reasonable cost of renting a similar replacement boat until yours is repaired.

What’s the difference between “Agreed Value” and “Actual Cash Value”?

An “agreed value policy” is a a coverage limit that is an agreed-upon value that the boat owner would get in the event of a total loss. This policy typically requires a marine survey to establish the agreed value. This is highly sought-after coverage for many boaters.

An “actual cash value policy” accounts for depreciation, damage, wear & tear, and maintenance, and these factors go into the limit that would be paid out at the time of the loss. This coverage doesn’t always require a marine survey and is usually less expensive than an “agreed value policy.”

Contact Harbord Marine!

If you have any questions on marine insurance, contact us to speak with a member of our Marine Insurance Team today.