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Water plays an important role in mythology, from water deities to lost islands. But, there’s more fact than fiction involved with boat insurance. Most of the reality involved in boat insurance comes from the word, “exclusion.” Since United Marine Underwriters represents several insurance companies, it’s important for you to know how to tell fact from fiction when it comes to boat losses resulting from fires, sinking and collisions.

Boat Insurance Exclusions and Consequential Loss Coverage

Sunken BoatAll boat insurance policies include exclusions and many include the wording “loss resulting directly or indirectly” or “loss resulting from.”

The most common exclusion in a boat insurance policy is wear, tear or gradual deterioration. So if you suffer a loss directly or indirectly from wear, tear or gradual deterioration, then your entire loss is excluded.

This simple wording “directly or indirectly” or “loss resulting from” is very important, because it can cause almost every fire or sinking to be excluded unless your policy includes Consequential Loss Coverage.

What is Consequential Loss Coverage

Consequential loss coverage basically removes the wording “directly or indirectly” or “loss resulting from” in boat insurance policies. So, if your policy includes consequential loss coverage and your boat sinks from a deteriorated sterndrive boot or thru hull fitting, your entire loss is covered. If your policy does not have consequential loss coverage, the entire loss can be excluded. Consequential loss coverage from a specialized marine insurance company is the best policy for your boat, otherwise almost every sinking, collision, or fire could be excluded as a result of “wear and tear.” However, even with consequential loss coverage not all fires, sinking or collisions are covered.

Why? Because the loss must be from a sudden event. Losses that may still be excluded include:

  • Boats that are unseaworthy or not fit for the intended use
  • Boats left unattended or abandoned
  • Neglected boats
  • Lack of reasonable state of repair to maintain the boat against loss or damage from ordinary weather conditions

Only a few marine insurance companies offer consequential loss coverage. United Marine Underwriters is pleased to offer you this coverage. Remember that no two boat insurance policies are alike.

We only represent A.M. Best rated “A” or better insurance companies. You can count on us to be there when needed. We offer you the best rates from the best companies for the most complete boat insurance. Quotes on your screen in 90 seconds.

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One Response to Debunking Some Boat Insurance Myths

  1. Boat insurance is not myth in these days. People are fully aware about their own conveyance however every boat is insured.

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