Salvage & Recovery
Boat Insurance Education
Education about Boat Insurance
Members should be aware of the different types of marine insurance policies available and understand what they cover. There are three main types of hull insurance for yachts and boats:
- Agreed value
- Actual value
- Replacement value
Each of these types of policies can be written with or without a deductible. Some policies limit payment.
Basic policies cover liability for accident or injury, called property and indemnity (P&I) coverage. Full vessel coverage includes P&I, plus hull coverage. You must request this type of policy to ensure that you are covered for damage to or loss of the vessel itself, in addition to accidents and injuries.
You should be sure that the policy contains a “sue and labor cause” so that the cost of saving your vessel is covered.
Most policies require that you do whatever is necessary to limit damage to the vessel. Policies may be void if you choose to do nothing and let the damage continue. In order for you to avoid being under-insured, we at Sea Tow strongly suggest that you have sufficient coverage in amounts appropriate to your vessel.
For more information on insurance contact your agent or Sea Insure.
The foregoing is offered for general information purposes only, and may not be construed as a legal opinion.