Marine Insurance Explained for Beginners

BC boat insurance online
Mar 31

BC Marine Insurance - Harbord Insurance Services
Basic marine insurance will protect you in the event of a loss or damage. This insurance is for non-commercial vessels such as yachts, sailboats, private fishing boats, cruise boats, and related leisure boats. Other small boats 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?

Common coverage under a basic marine insurance policy includes:

  • Collision: this will cover the repairs or replacement of your boat in the event of a collision if you’re at fault.
  • Comprehensive: this will cover you if your boat is stolen, damaged, or vandalized.
  • Property Damage & Liability: coverage for damaged 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:

  • 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 in the case of an oil, chemical, or other waste spill 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 as a result of 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 coverage limit that is an agreed upon value that the owner of the boat 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. These factors go into the limit that would be paid out the time of the loss. This coverage doesn’t always require a marine survey and is usually less expensive than an “agreed value policy”.

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