Frequently Asked Questions

How much insurance coverage should be purchased?

How much Boat Insurance you need ultimately depends on your risk factors and the value of your boat. First, you want to find out if your lender or marina requires Boat Insurance. If you have a loan out on your boat, the lender might require a certain amount of insurance to protect their asset. Check your contract to see if you have any Boat Insurance minimum requirements. Additionally, some marinas, especially state-run marinas, also require insurance so they know the boats are safe and insured at their dock. Also, some states require liability insurance (bodily injury and property damage) for some types of boats.

What is a Condition and Valuation Survey?

A Condition and Value Survey (CVS) is a report which details the current condition of a boat and estimates its value. The surveyor will complete a thorough visual inspection and non-destructive testing of the boat you intend to purchase. It gives the insurer an accurate in-depth assessment of the condition of the vessel in order to properly insure it. Vessels 10 years and older with a length of 27 feet or more would be recommended to have a CVS survey completed.

What type of boats can be insured?

• Center console - Has an open deck with the console in the center, so fishermen have space to easily maneuver to fight fish. These boats are typically powered with twin outboards, however some may have one engine or up to four.
• Cruiser/express cruiser - This type of boat typically has accommodations or features that make for comfortable boating including a galley, head, and berth(s), making it a great family boat. An express cruiser reflects that the boat can achieve greater speed.
• Houseboat - A large, flat-bottom boat with house-like characteristics, such as comfortable furniture and living accommodations. These boats are intended for inland operation on calm waters.
• Sailboat Mono - A single hulled (mono) sailboat which primarily uses wind as its means of propulsion. Most will have an auxiliary engine as an ancillary means of propulsion.
• Sportfish - A type of fishing boat with cabins and many dedicated features, including a large aft cockpit and a fighting chair to reel in the big one.
• Motor yacht - A large powerboat, with luxurious interior accommodations and capable of long range cruising.

Does my current coverage have protection for trips to Mexico?

Review the specific navigation allowed on the policy. Some will automatically include Mexico but some others do not. Mexican law requires that all boats have liability insurance issued through a Mexican insurance company.

What is commercial towing and assistance?

Most Boat Insurance policies provide coverage for towing and emergency services. Some policies may automatically include the coverage while on others it may be optional. Towing coverage may only be provided while on the water or may provided while on water or land. Towing provides coverage to the nearest place where necessary repairs can be made. Emergency services include such items as delivery of fuel, oil, parts, battery and emergency labor while away from safe harbor.

Is fuel spill-pollution coverage provided?

Pollution has generally been covered under the liability section of Boat Insurance policies. In recent years Boat Insurance companies have been providing a separate limit for Pollution/Fuel Spill coverage.

What coverage is provided for a tender/dinghy?

A tender or dinghy is a small boat used to service the larger boat. Some Boat Insurance policies automatically include a Tender as a covered item in the hull (boat, machinery and equipment) definition. If automatically covered, it may have the same deductible as the boat. Most insurance companies will allow you to schedule the Tender to obtain a lower deductible for an additional premium. Companies may provide coverage on Agreed Value or Actual Cash Value.

What is hurricane haul out coverage?

Hurricane Haul out coverage reimburses some or all of the expense of having the boat hauled in the event of a hurricane, tropical storm or tropical depression. Some insurance companies automatically include the coverage, some add the coverage by endorsement for an additional premium and others do not provide the coverage.

What is an electronics deductible?

Some boat insurance companies have a separate electronics deductible. This deductible is lower than the hull deductible. Some Boat Insurance programs will automatically include a lower electronics deductible while others add it by endorsement. Some companies do not offer a lower electronics deductible.

What are salvage charges?

Salvage charges are amounts paid to protect the vessel against additional loss. This could be as simple as adding a barrier to a broken window or as complicated as a salvage company protecting the vessel if grounded. Most marine insurance policies provide salvage charges as part of the normal Boat Insurance policies. Other companies will insure your boat from physical damage but do not provide coverage for salvage charges.

What is a named storm deductible?

A Named Storm Deductible (NSD) is common today for vessels in areas subject to hurricanes, tropical storms and tropical depressions. The NSD is higher than the normal hull deductible and will be applied if the boat is damaged due to a named storm. The NSD varies with each Boat Insurance company. The most common is 5% of the hull value with 10% in high storm areas such as Florida and the remainder of the Gulf Coast.

What is a Hull deductible?

The hull deductible is the amount you will pay in the event of loss to the hull, machinery and equipment. Some boat insurance companies will use flat deductible amounts like $250, $500, $750 or $1000. Others will use a percentage of the boat value. 1% of the boat value or $250 is generally the minimum deductible available. Trailers, tenders and personal effects are not generally included in the hull deductible.

What Questions should I ask about my Boat Insurance policy?

• Is my policy Agreed Value or Actual Cash Value? Actual Cash Value means that your carrier would pay out the replacement cost minus depreciation, whereas Agreed Value means that coverage is provided for a pre-determined amount.
• Does my Boat Insurance policy meet my navigation needs? Consider where you will realistically take your boat. Wider navigation usually costs more, but you can keep it tight and do trip endorsements at less cost.
• Am I covered for mechanical, electrical, or structural breakdown? This is a large and complex issue, ask about this specifically.
• Is my policy permissive use or is it named operator? Permissive use means that anyone can run the insured vessel with your permission, and named operator means that only those approved by the insurance carrier can run it.
• Is my liability coverage enough to meet my needs? The liability limits of the Boat Insurance policy can be augmented with an umbrella policy if the standard limit do not suffice. The umbrella policy will require minimum underlying limits in the Boat Insurance policy.

Who do I call if I have a Claim?

If you have a claim please call 1-xxx-xxx-xxxx and we will be happy to help.