Marine Insurance FAQs

Coverage

There may be a separate deductible to cover damages caused by a hurricane. This deductible varies by state and depends on the classification of the storm when it is officially declared.

Generally, the distinction between a boat policy and a yacht policy is determined by the size of the boat. Boat policies cover boats less than 26 feet long, and yacht policies cover boats 27 feet long or more. Exceptions may apply.

Coverage for your personal belongings depends on the type of policy. For yacht policies, your belongings are covered subject to certain limitations and a special deductible. Boat policies generally don’t provide this coverage, but you can add coverage with an endorsement. We can work with you to find the coverage that best suits your needs and budget.

Damage and Repairs

Additional items identified during the repair of a covered loss will only be considered if determined to be directly related to and/or caused by the loss. Typically, the normal “wear and tear” of an insured item will not be covered.

If you have a yacht policy, damage is calculated on a replacement cost​ basis, with the exception of certain items specified in your policy. For a boat policy, damage is calculated on an actual cash value basis, with appropriate depreciation applied to the items being repaired.

Yes. A representative will work with you and the boatyard you choose to estimate and/or repair covered damages.

If your boat can't be repaired, it is considered to be a total loss​. Under a yacht policy​, you'll receive the replacement cost​ for your boat, up to the policy limit. Under a boat policy, you'll receive the actual cash value.

After we settle a covered loss, we’ll salvage​ parts of the boat to recover costs. Salvage can also occur if your boat was moved due to a legal liability and damaged in the process.

Towing

Waterway towing is covered if your boat breaks down or suffers damage. For example, if your boat runs out of fuel or is involved in a collision, coverage will apply for towing. However, if a storm is approaching, your policy​ does not cover the cost of hauling the boat out of the water as a precautionary measure.

Your boat may have been towed for safety reasons during a storm, or because it was in a location deemed unsafe for surrounding waters and other boaters. In these instances, licensed salvors may be called by the Coast Guard or a local harbormaster to enforce boating laws. Your boat may be towed by one or more of these entities to ensure safety. Reimbursement for these claims depends on the terms and conditions of your policy.