Boat Insurance Policy Definitions:

These terms are common throughout boat and watercraft insurance policies. familiarizing yourself with these words may help you decided exactly what type of insurance options you need for your vessel



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Accidental fuel spill: A sudden and unintentional discharge, spillage or leakage of petroleum based products usually required for the normal operation and use of your boat.

Actual cash value: The estimated cost of replacement of the covered property at the time of the loss minus a deduction for any depreciation.

Agreed Value: This is an amount of insurance for your covered property be it boat or watercraft as shown on the declarations. An agreed value is set and does not consider depreciation if benefits are paid.

Auxiliary Equipment: This refers to boating materials not permanently affixed to the boat itself that are still considered necessary and required to operate or maintain your vessel.

Boat: means the boat, owned by you, as shown in the declarations, including its hull, machinery, spars, sails, fittings, furniture, and other permanently installed equipment located on board and normally required for the operation or maintenance of the boat.

Bodily injury: Any physical injury or bodily harm which results in sickness, disease or death. It includes required care and loss of services.

Constructive total loss: This is a loss or damage to property for which the cost of repairs is likely to equal or exceed the value of insurance as shown in the declarations.

Declarations: are the page(s) of your policy that show the amounts of coverage and of insurance/limits of liability that you have on your boat. Within the policy, any reference to these pages includes any amended declarations.

Family member: This is any resident of your household who is related to you by blood, marriage or adoption.

Fishing equipment coverage: Any rods, reels, lures and rigs, lines, nets, tackle, and tackle boxes on board of your vessel.

Insured: This refers to the person or persons whose names are on the insurance policy. Insured persons can include family members, and any unpaid person or legal entity operating your boat for private pleasure use with your permission. However, insured does not include: any paid captain, crew member, or any person operating, employed by, or the agent of a marina, boat repair yard, yacht club, sales agency, brokerage, consignment yard, boat service station, or other similar organization.

Latent defect: A hidden flaw that was inherent in the construction materials at the time of the original building of the boat. Latent defects are not discoverable by ordinary observation or methods of testing.

Navigational territory: These are the waters in which your boat is permitted to operate based on the declarations of your boat insurance policy

Occurrence: means a loss or accident, including continuous or repeated exposure to substantially the same general harmful conditions that result, during the policy period, in bodily injury or property damage.

Personal property: Any property belonging to an insured or guest of an insured that is not specifically excluded in declarations, while it is aboard your boat or being loaded onto or unloaded from your boat.

Personal watercraft: These are jet skis, hydro cycles or other similar vessels which use an inboard motor to power a water jet pump as a primary source of motor power. These craft are usually designed to be operated by a person sitting, standing, or kneeling, rather than the conventional manner of sitting or standing inside a boat.

Policy: This refers to your insurance coverage as a whole. Including the application, the declarations, and any applicable forms and endorsements.

Property damage: This is any actual physical loss or damage to or destruction of tangible property of others, not otherwise insured by this policy including the loss of use of such property.

Total loss: this is a loss in which your boat is completely lost or destroyed and cannot be repaired by any reasonable means

Uninsured boater: Any owner or operator of a vessel who is personally liable for an accident due to the fact that no liability insurance policy applies to them or can be identified. This is a hit-and-run operator.

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