What Does Boat Insurance Not Cover in a Policy

Boat insurance policies often have exclusions that might catch you off guard. Normal wear and tear is not covered by boat insurance.

Pre-existing damage or conditions are also not typically covered. This means if your boat had a problem before you got insurance, it won't be fixed by your policy.

Some policies may not cover damage caused by flooding or earthquakes. This is because these risks are often considered high-risk and are typically covered by separate policies.

Keep in mind that boat insurance policies can vary in their coverage and exclusions.

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Many commercial boat insurance policies have one or more exclusions, so it's essential to read your policy and speak with your agent to understand the limitations.

The Yacht or Boat being in an unseaworthy condition is a common exclusion. This means if your boat is not in good working order, you may not be covered in case of an accident or damage.

Wear and tear or depreciation due to the ordinary action of the wind and waves is another exclusion. This includes damage caused by normal use or exposure to the elements.

Here's a list of some of the specific exclusions you might find in a boat insurance policy:

Pest and infestations can be a costly headache for boat owners, and unfortunately, commercial boat insurance doesn't typically cover them.

If your boat is attacked by mice, rats, raccoons, ants, termites, roaches, or other types of pests, you'll be responsible for paying for their extermination and subsequent repairs.

Mold, mildew, and barnacle damage are also not typically covered by commercial boat insurance.

To avoid pest infestations, make sure your boat is clean and dry after each use.

Cleaning up spills immediately is crucial to prevent attracting vermin.

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Insurance policies often have exclusions that can catch you off guard. Here are some common exclusions to be aware of:

Boat insurance policies typically exclude damage caused by an unseaworthy condition of the boat. This means if your boat is not in good working order, you may not be covered in the event of an accident.

Wear and tear is also not covered by most boat insurance policies. This includes depreciation or the ordinary action of the wind and waves, which can cause damage over time.

Corrosion, rot, rust, mildew, dampness, and weathering are all excluded from most boat insurance policies. These types of damage are often considered maintenance issues rather than accidents.

The wind can cause damage to your boat's protective covers and sails while they're hoisted. This is another exclusion to be aware of when it comes to boat insurance.

If your boat is stolen, you may not be covered if the items stolen were not securely fastened to the boat or within a locked compartment on board. This is an important exclusion to consider when insuring your boat.

Outboard motors are also subject to an exclusion if they're not securely locked using an anti-theft device. This is a simple step to take to ensure you're covered in the event of theft.

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Wilful misconduct or recklessness by you or others in control of the boat can also void your insurance policy. This includes operating the boat while under the influence of alcohol or drugs.

Some boat insurance policies may also exclude mechanical or electrical breakdowns. This is something to consider when choosing a policy.

If you operate your boat outside of the cruising area specified in your policy, you may not be covered. Be sure to review your policy to understand the boundaries of your coverage.

Certain claims under personal accident coverage, such as suicide, may also be excluded from your boat insurance policy.

Here are some additional restrictions to be aware of:

Personal property single article limits can also apply unless specified in your policy. This means there may be a limit on the value of individual items that can be claimed.

Physical damage exclusions can be a surprise for many boat owners. Normal wear and tear is often excluded under a boat or yacht policy.

The type and number of physical damage exclusions vary from company to company, so it's essential to compare policies to avoid surprises later. Some companies include coverage for damage caused by zebra mussels, while others do not.

A faulty item that directly causes damage to your insured boat is usually excluded, but the resulting damage itself is covered. For instance, if your water pump is faulty and causes damage to your boat, the water pump itself is excluded, but the damage to your boat will be covered.

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Normal wear and tear is often excluded under a boat or yacht policy, so it's essential to maintain your boat regularly to prevent loss.

Some exclusions can include gradual deterioration, weathering, insects, mold, animals, and other marine life. The number and type of physical damage exclusions vary from company to company.

Saltwater corrosion is a common boat deterioration that's almost never covered by boat insurance. You can protect your boat from corrosion by frequently giving it a freshwater bath.

Boat insurance policies may not cover a defective item that directly causes damage to your insured boat, but will cover the resulting damage itself. For example, if your water pump is faulty and causes damage to your boat, the water pump itself is excluded, but the damage to your boat will be covered.

Machinery damage exclusions can also apply, meaning that if your machinery is damaged by improper use, some policies may not cover the loss. It's crucial to review your policy to understand what's excluded.

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Lack of Maintenance is a common reason why insurance claims are denied. If damage to your commercial boat is caused by a lack of maintenance, your insurance will likely not cover it.

Properly maintaining your boat is your responsibility. If you take your boat out on the water and it sinks because it wasn't seaworthy when you set sail, you could be liable for the recovery and towing costs and replacing your boat.

Use checklists to determine if your boat is seaworthy before you depart. If any problems are found, have them repaired before setting sail.

Your insurance company won't cover your boat if it's incorrectly stored and transported in the off-season. This includes failing to properly tie down your boat while driving it from the lake to the storage center, which can cause it to fall off.

Most insurance policies cover your boat on-land, but only if you take appropriate measures and precautions to keep it safe. Make sure to read the transport and storing exclusions in your policy to avoid any surprises.

Commercial boat insurance policies typically don't cover your boat if it was damaged while being improperly stored or towed. This is why it's essential to safely and professionally transport and store your boat.

Make sure to read the transport and storing exclusions in your policy, as these can vary greatly.

Improper storage and towing can lead to costly damages that aren't covered by your insurance policy.

Commercial boat insurance policies typically don't cover damages that occur during improper transportation or storage.

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It's essential to know your sea navigation area to understand where your boat is and isn't covered on the water. This can help you avoid unexpected surprises if you're involved in an accident. Understanding your navigation limits can save you a lot of stress and financial burden.

Some insurance policies place navigational limits on watercraft. If you're in an accident outside of those limits, your insurance policy may not cover any losses. Make sure to read your policy thoroughly and understand the navigational limits.

Commercial boat insurance policies typically include comprehensive coverage, but they won't cover damage caused by improper storage or towing.

You need to read the transport and storing exclusions in your policy to understand what's not covered. Make sure to always safely and professionally transport and store your boat.

If you don't properly tie down your boat while driving it from the lake to the storage center and it falls off, your insurance company won't cover it.

Most insurance policies cover your boat on-land, but only if you take appropriate measures and precautions to keep it safe.

Additional insurance restrictions can be a bit tricky to navigate. Some policies have clauses that exclude certain types of loss or damage.

The excess, or the amount you have to pay on any boat insurance claim, is another important consideration. This can vary depending on your policy.

You'll also need to be aware of the personal property single article limit, unless specified in your policy. This means that if you have a valuable item on board, you may not be fully covered in the event of loss or damage.

Here are some additional insurance restrictions to keep in mind:

Exceeding the limits set by your boat insurance policy can have serious consequences. If you sail out of your designated navigation limits or into off-limits waters, your insurance coverage will be void.

Your insurance policy will specify the geographic region where you are covered. Make sure you know your sea navigation area to avoid any issues.

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Some policies may exclude certain areas, such as off-limits waters, and if you're in an accident outside of these limits, your insurance policy may not cover any losses.

If you need additional coverage, speak with your agent about adding another policy to ensure you're protected.

Here are some potential consequences of exceeding your navigation limits:

You'll want to carefully review your boat insurance policy to understand the additional restrictions that may apply.

Some policies have exclusions for certain types of loss or damage, such as wear and tear or depreciation.

Make sure to check your policy for specific exclusions, which may include things like corrosion, rot, rust, mildew, dampness, or weathering.

Your policy may also have clauses that exclude certain types of loss or damage, or limit the amount you can claim.

Additionally, be aware that boat insurance companies will not pay more than the sum insured or limits shown in your policy.

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Here are some key additional restrictions to be aware of:

It's also essential to understand the navigational limits of your policy, as accidents outside of those limits may not be covered.

If your boat sinks and takes all of your commercial fishing gear and equipment with it, your commercial boat insurance may not cover the loss.

Commercial boat insurance only covers the boat, electronics, engines, propellers, and things that are physically attached to the boat.

You can get a separate policy to cover your gear, such as nets and gear coverage.

Additional policies to consider include cargo coverage.

This means you'll want to carefully review your insurance policies to ensure you're protected in case of a loss.

Professional racing can be a costly venture, especially if you're not properly insured. If you enter your commercial boat in a professional race or conduct speed tests, your standard commercial boat policy won't cover you in case of an accident or damage.

You may be covered if you enter a club race or race for pleasure, but it's essential to discuss this with your agent to determine which events are covered under your policy. I've seen boat owners get caught off guard by this, so it's crucial to clarify the details.

It's best to have the cash on hand to repair or replace your commercial watercraft if you do decide to enter a professional race, as the costs can be significant. You can also consider getting a policy that specifically covers professional boat racing.

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