Marine Insurance FAQ's

What is the difference between Agreed Value and Actual Cash Value policies?

Agreed value is the fair market value of your vessel as agreed upon by you and the insurer when your policy is first put in place. In the event of a total loss of your vessel this is the amount that will be paid by your insurer without deduction for deprecation. Actual Cash Value, or ACV, is the replacement cost of your vessel or equipment less depreciation, as determined by the insurer at the time of loss.

What's covered in the hull value of my policy?

The hull value includes the actual value of your boat and motor including other equipment as is generally required aboard for the safe operation and maintenance of the vessel. It does not include your trailer or personal articles.

Why are surveys required?

Surveys help to protect your investment by identifying existing and potential safety and maintenance problems. An independent surveyor will not only point out trouble spots but will also suggest solutions. Insurers often require surveys to prove the value and condition of vessels.

Does my policy include coverage for the tender?

Some policies automatically cover tenders under the hull coverage section. Others require these items to be separately identified, often with a reduced deductible.

What is Protection & Indemnity?

Protection & Indemnity is the third-party liability section of your policy. This protects you if you are sued for property damage or bodily injury damages (to someone other than yourself) arising out of the negligent operation of your vessel.

Can I insure my boat and trailer on the same policy?

Most insurers allow you to add physical damage coverage for your trailer to your boat policy. However, the liability coverage must be purchased separately.

What's a Trading Warranty?

The Trading Warranty or Navigational Area, defined on your policy, identifies the area that you must stay within for your coverage to remain in effect. If you plan on operating your vessel outside this area, written permission must be obtained from your insurer in order to maintain coverage.

How do I obtain coverage if I charter my boat?

For an additional premium many insurers will agree to endorse your policy to allow for a limited number of charters. If you plan on chartering your vessel on a more regular or full-time basis you may need to replace your existing policy with one that covers commercial charters.

For more information, please contact your local HUB Barton office.

For more information, please contact us at: 1-800-668-2112 or email at