What Does Hull Value Mean?

What happens when insurance totals your boat?

In the event of a total loss, your boat insurance policy may pay you based on the Agreed Value, Actual Cash Value or the Replacement Cost Value.

In explaining how these three policy forms are different, I will use a three-year-old boat, insured for $40,000 which was destroyed by fire..

What is loss of hire insurance?

Loss of Hire Insurance protects the shipowner from a daily loss of income arising from physical damage to the vessel. The loss can be the result of damage to the vessel, recoverable from the underlying hull and machinery cover.

What does a hull policy cover?

Hull and Watercraft Insurance Extreme weather, an accident or collision can put your valuable vessel out of commission. Travelers Commercial Hull provides coverage for physical damage to the hull, machinery, and equipment of commercial vessels. We also cover property damage resulting from collision with other vessels.

What is agreed value vs actual cash value?

If the car is insured for the Actual Cash Value, you will receive $10,000 from your insurance carrier, since that is the current value of the car (replacement cost minus depreciation). Agreed Value means that coverage is provided for a pre-determined amount settled upon by both the insured and the insurance company.

What is hull damage?

A hull failure is a failure in the main body of the vessel which protect her inside from water ingress or structural damage. … A loss of hull’s integrity may be caused by corrosion of vessel’s hull, or by fracture due to overload or as a result of an accident such as collision, contact or grounding.

What is agreed hull value?

Agreed Value boat insurance is a type of coverage that has an agreed upon amount that the owner will receive should something happen to their boat. … Consumer can receive the total value of the boat back when their claim is approved.

What is hull deductible insurance?

The hull deductible is the amount you will pay in the event of loss to the hull, machinery and equipment. Some boat insurance companies will use flat deductible amounts like $250, $500, $750 or $1000. Others will use a percentage of the boat value. … The savings in premium varies per company.

What is marine insurance and its types?

The different types of marine insurance can be elaborated as follows: Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture on the ship. … Indemnity: Risks which are related to the hiring of the ship. E.g. Cargo-related claims.

What is hull interest insurance?

Hull Interest insurance is a cover against actual total loss or constructive total loss. … The Hull Interest cover allows the shipowner to have an expectation of returning to status quo in the event of a total loss, even taking into consideration the total capital value of the ship.

What is increased value in marine hull insurance?

Increased Value (IV) Insurance or Hull Interest Insurance, is a property insurance which insures the full value, or mortgage value, of a vessel and/or the additional costs of replacing a vessel it is a total loss.

How do I find the actual cash value of my boat?

Actual Cash Value is determined by the market value of the boat at the time of the loss. In our example, if the boat is insured for $40,000 and the Actual Cash Value of the boat is now $30,000, $30,000 is the most you will be paid regardless of how much the boat is insured for.

What does an aviation policy cover?

Aircraft insurance covers repairs to damaged airplanes or other flying machines. More comprehensive coverage may also include damage caused to airports, hangars, and other relevant land-based property.

What is marine hull insurance?

Marine hull insurance covers accidental loss or damage to boats used for commercial purposes; it includes salvage costs, and third party liability cover. … Ship builders risk protects vessels under construction or conversion; cover is provided against all risks of physical loss or physical damage.