Marine Insurance Basics For Beginners
A basic definition of marine coverage is protection of a ship, cargo or property due to loss or damage while a ship is in transit from one port to another. There are other sub sets of marine insurance, such as marine cargo insurance, marine business insurance and personal watercraft insurance that provide additional coverage.
One type of marine insurance is individual watercraft insurance which is aimed to target insurance of non-commercial usage watercraft. Individual watercraft insurance is similar to that of automobiles. Similar to automobile insurance, individual watercraft insurance policies might not only cover property losses but also offer individual protection and watercraft liability coverage.
In the vent of an accident, people involved as well as occupants of the watercraft, this liability coverage will provide bodily injury protection. As far as additional medical coverage is concerned, a separate policy rider is always available as an option. Coverage for vessels lacking insurance and damage caused by hit and run vessels is also available for uninsured boaters.
This also includes towing and salvage coverage. If your car breaks down you will be covered and they will also provide gasoline if you run out. Furthermore, towing and salvage coverage can keep you from having to invest a lot of money salvaging a vehicle with heavy damage.
Hull coverage for the vessel is typically offered in either “agreed value” or “actual cash value” forms. Like other forms of insurance, actual cash value policies depreciate considerably as the vessel ages, or otherwise becomes less valuable. Agreed value insurance continues to pay the full amount shown on the policy without depreciation.
Similarly, marine insurance can carry coverage for everything, or just for specified risks covered in the policy. Regardless of what type of coverage you carry, it is crucial that you clearly understand all stipulations that would cause the policy to be voided. An example of this would be that some policies stipulate certain navigational limits, exceeding any of which voids the policy. Depending on the area where you live it can be very easy to exceed these limits, especially in waters where boundaries are not clearly marked.
Personal watercraft insurance is available for virtually all watercraft, from small pleasure boats and fishing boats, to large yachts and houseboats. Specialty coverage can include coverage for watercraft rentals, fishing excursions, and other charter boat trips. With a wide selection of insurance companies and options available, finding the right coverage for your craft and situation simply takes a little research.
A basic definition of marine coverage is protection of a ship, cargo or property due to loss or damage while a ship is in transit from one port to another. This can cover any sized body of water. There are other sub sets of marine insurance, such as marine cargo insurance, marine business insurance and personal watercraft insurance that provide additional coverage. Personal watercraft insurance is available for virtually all watercraft, from small pleasure boats and fishing boats, to large yachts and houseboats. Specialty coverage can include coverage for watercraft rentals, fishing excursions, and other charter boat trips.
- Karl Stadler
