Marine Basics

Boats Marine insurance can provide physical damage coverage to repair your boat if it is accidentally damaged or destroyed by a covered peril such as collision, fire, theft, tropical storm, lightning or vandalism. This coverage is broad, and provides coverage for the boat, including its machinery and auxiliary equipment, outboard motors, boat trailer and personal property.

A Marine Insurance policy can also provide physical damage coverage on an Actual Cash Value (ACV) or an Agreed Amount Value basis.

A partial loss is settled by taking the total cost of the repair less a percentage for depreciation. Actual Cash Value policies pay for Replacement Costs less depreciation at the time of the loss

Agreed Amount Value policies mean you and the insurance company have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss without any deduction for depreciation. Most Agreed Amount Value policies require actual cash value on certain damaged property such as sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units or outdrives.

Physical Damage coverage is usually subject to a deductible. The deductible is the amount you are willing to pay in case of a loss. The higher the deductible, the lower your insurance premium. Boat policy deductibles are usually calculated as a percentage of your coverage (1%, 2%, 3% of the vessel value, for example) or can be on flat amounts of $250 or $500.

A Marine insurance policy can also offer Personal Effects coverage to provide protection for those items not intended for the normal operation of your boat, such as portable TVs, cellular or portable phones, stereos, radios and cameras.

Boat Liability

Marine Insurance liability provides protection if you are sued as a result of hitting another boat, or if someone is hurt on board your vessel because of your negligence.The Liability section of the policy provides protection if you are legally responsible for damages to property or injury to someone other than yourself or a family member. This coverage is usually offered in increments of $100,000 up to $1 million.

Medical Payments

Should someone be injured while in, upon, boarding or leaving your boat, the Medical Payments section of the policy provides protection for reasonable medical, ambulance and hospital costs

Uninsured Boat Owners Coverage

If an uninsured boat or “hit-and-run” boat causes damage, the Uninsured Boat Owners section of the policy provides coverage for injuries caused by an accident.


Commercial Towing and Assistance enables you to be reimbursed for reasonable costs incurred if you break down at sea and need a commercial tow to port .

These are some of the basic coverages you should look for when purchasing Marine insurance. As a market leader in the Marine insurance industry, KIA offers wide coverages at great rates for almost any type of vessel.


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