Property Coverage & Limits
Coverage
Limits
Additional coverage for ‘boating accessories’ as defined in the policy is provided, subject to a $2500 limit. This limit is reduced to $500 if the ‘boating equipment’ is lost from a ‘personal watercraft’. Coverage for newly acquired property is subject to limitations on the size (up to 30 feet in length), time (30 days), and exposure ($25,000).
Typically, coverage is provided for direct physical loss to three primary components of the boat: The hull (the boat itself), the motor(s), and the trailer. All these components are insured separately (meaning that a boat with multiple motors should have each motor listed individually).
Towing & Labor
The policy provides coverage for the reasonable cost of towing and labor arising out of the boat’s disablement. This coverage does not cover the cost of the delivery of gas, oil, or batteries, parts or supplies, or changing a ‘boat trailer’ tire. Coverage is limited to $500, but is not subject to a deductible.
Coverage Exclusions
The property coverage under a boatowners policy is ‘Open Peril’. The coverage is pretty broad and includes only 12 exclusions. These include:
- Animals and marine life
- Bubbling and delamination
- Civil Authority
- Contamination or deterioration
- Criminal Acts (of an insured)
- Freezing or overheating
- Intentional Acts (by or at the direction of an insured)
- Maintenance and repairs
- Mechanical Breakdown
- Nuclear Hazard
- War or military action
- Wear and tear
Please Note:
Property used in a ‘business’, hired out or chartered for the use of others, used to transport goods or people for a fee, or rented to others is not covered. Likewise, equipment used in any form of racing or stunts is excluded from coverage, as are boats used as a primary or permanent residence. No loss of use or rental benefits are provided by the policy.
Actual Cash Value (ACV)
Losses are settled at Actual Cash Value up to the policy limit for the damaged components. The deductible applies ‘per boat’, meaning loss to a boat, its motor and trailer together would incur one deductible. However, losses to multiple boats insured under the same policy would be subject to multiple deductibles, even if the losses occur at the same time.
Hull & High Water Part 2
Nakia Crissman
Created on March 4, 2026
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Transcript
Property Coverage & Limits
Coverage
Limits
Additional coverage for ‘boating accessories’ as defined in the policy is provided, subject to a $2500 limit. This limit is reduced to $500 if the ‘boating equipment’ is lost from a ‘personal watercraft’. Coverage for newly acquired property is subject to limitations on the size (up to 30 feet in length), time (30 days), and exposure ($25,000).
Typically, coverage is provided for direct physical loss to three primary components of the boat: The hull (the boat itself), the motor(s), and the trailer. All these components are insured separately (meaning that a boat with multiple motors should have each motor listed individually).
Towing & Labor
The policy provides coverage for the reasonable cost of towing and labor arising out of the boat’s disablement. This coverage does not cover the cost of the delivery of gas, oil, or batteries, parts or supplies, or changing a ‘boat trailer’ tire. Coverage is limited to $500, but is not subject to a deductible.
Coverage Exclusions
The property coverage under a boatowners policy is ‘Open Peril’. The coverage is pretty broad and includes only 12 exclusions. These include:
Please Note:
Property used in a ‘business’, hired out or chartered for the use of others, used to transport goods or people for a fee, or rented to others is not covered. Likewise, equipment used in any form of racing or stunts is excluded from coverage, as are boats used as a primary or permanent residence. No loss of use or rental benefits are provided by the policy.
Actual Cash Value (ACV)
Losses are settled at Actual Cash Value up to the policy limit for the damaged components. The deductible applies ‘per boat’, meaning loss to a boat, its motor and trailer together would incur one deductible. However, losses to multiple boats insured under the same policy would be subject to multiple deductibles, even if the losses occur at the same time.