Selecting an insurance policy and agent to protect your trawler or motor yacht can be very confusing and complicated. Marine insurance is a highly specialized field, and a far different product than that which you buy for your house and automobile. Incidentally, marine insurance is the oldest form of insurance and governed by its own set of Maritime Laws.
Hull coverage usually addresses the hull and all items on the trawler or motor yacht that are permanently attached or are on the trawler or motor yacht and used in the regular operation of the vessel, i.e. electronics, TV’s etc.
Your hull insurance bought at an Agreed Value means you and your insurance underwriter "agree" to the value of the boat. if your boat is a complete loss you will be covered for that amount on the Declaration Page of the Policy. Your trawlers value will remain at the price at which you originally began the coverage.
There is also, Actual Cash Value (ACV). This means that if your yacht was totaled in a loss you would be tendered a depreciated settlement – the going market value of trawler or motor yacht. Many people may not be fully aware of what they are purchasing. Keep in mind that your trawlers value will decline every year as she matures.
Most losses are partial losses and you could expect a depreciated settlement on that as well. But be careful with choosing Actual Cash Value, beware, you may also find that if you have a claim you are getting far less than you bargained for.
Be certain to talk to your agent about how your loss would be settled for both a total loss and a partial loss and what would be subject to depreciation. Often items like canvas, cushions, engines etc. are subject to depreciation. Some policies actually exempt canvas from wind storm damage.
You will also need to make sure that the policy you buy covers salvage, environmental cleanup in the case of fuel spills, and shipwreck removal. Often the recovery of a vessel could exhaust your policy limits were it not for these additional coverages often included in the better marine policies.
Recreational marine insurance polices will always include cruising boundaries. It is usually a guarantee of the policy and therefore extremely important that it is correct on your policy. A warranty is strong language in an insurance policy and if you venture outside those limits noted on the declarations page, you will not have any coverage is you were to sustain a loss while cruising. Make sure you speak with your agent about this matter and make sure you have the coverage you need; keeping in mind this is a crucial factor in determining the premium.
Lay-ups are something to review with your agent.
If you are in hurricane prone areas, a layup will often be covered by the policy to protect the trawler from harm by an active storm. Your policy may even prohibit your boats presence in these areas during active months or have higher premiums. Be sure to discuss your cruising preferences with
You may be entitled to some premium reduction if the trawler or motor yacht is hauled out of water during the winter months too.
Some other things that could result in a reduction in costs are boating classes,a Coast Guard Captain License, and equipment on your trawler or motor yacht such as anti-theft devices.
In addition, many yacht policies will have Longshore and Harbor Workers Compensation which would cover you should you become legally bound under the Longshore and Harbor Workers Compensation Act for any bodily injury arising out of the ownership, maintenance or use of a yacht. Jones Act coverage would also be necessary if you hire crew or have a full-time professional Captain.
In addition, look at the Exclusion section of the policy so you understand what is not covered.
Since maritime insurance is a different animal, you will want to work with an Agent that has experience with trawler or motor yachting and knows the marine insurance business, so they will know how to advise you.
So, when you are ready to buy that trawler, keep your insurance options open.
in addition, check out our list a marine insurance providers.
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