BoatUS.com: Marine Insurance - In the Event of a Loss

BoatU.S. Marine Insurance is underwritten by a company of the CNA Insurange Group (referred to below as "the carrier"), one of the largest specialty insurers for over a century.

The following paragraphs explain payment information in the event of a loss as explained in the policy.

Total or Constructive Total Loss
You will be paid the Agreed Hull Value if the boat is lost absolutely, or if the reasonable cost of salvage and/or repair exceeds the Agreed Hull Value.The carrier is not obligated to accept or pay for the boat or any boating equipment which you abandon. If you are paid the Agreed Hull Value, the carrier has the right to the insured property.

Repairs for Partial Losses
The reasonable cost of repairs is paid with depreciation applied to the following items: paint and finishes, protective covers, fabric or sails, outdrive units, outboard motors and gel coat, beginning with the sixth year from the year of manufacture, and to internal machinery beginning with the eleventh year from the year of manufacture. However, if used or remanufactured parts are available and you agree to accept them, depreciation will not apply. In the event of damage to plywood, plastic, fiberglass, metal, cement, or other molded material, the carrier is obligated to pay only the reasonable cost of repairing the damaged area. The carrier has the option to make, or reimburse you for, repairs or replacements, or to pay you directly, based on an agreed estimate of loss. Repairs and replacements will be made with like kind and quality.