In the event of a total loss, you need reassurance that your insurance company will pay out! Marine Insurance Now explains the basics of salvage value and total loss criteria so you can make sure you’re covered!
You've just forked out thousands of dollars on a brand-new boat and the last thing you want is for it to be declared a total loss! Accidents happen and, if you're not adequately covered, you could find yourself without a boat within weeks. When the cost of repairs exceeds the market value of your vessel, you could be up the creek! Don't wait until it's too late. Marine Insurance Now explains how you can secure the protection your vessel deserves, today.
According to the US Coast Guard, property damage resulting from boat collisions totaled a staggering $63 million in 2022. Some of these accidents will have unfortunately resulted in total loss. With its latest guide, Marine Insurance Now explains the criteria relating to total loss, helping you to make more informed decisions on which collision coverage is right for you.
Go to https://marineinsurancenow.com/collision-boat-insurance-what-you-need-to-know/ to find out more.
The guide explains the term salvage value as the monetary value of your vessel after it has been damaged or declared a total loss. This determines how much an insurance company will pay you following an insurance claim. “Understanding the salvage value of your boat can help you make informed decisions about whether to repair or replace it after a collision,” the experts say.
Marine Insurance Now details how insurance companies determine salvage value, listing the age, condition and market value of your vessel as considering factors alongside any damaged parts. Insurance companies will also consider any special features or upgrades that could increase the value of your vessel, even when damaged, the guide confirms.
If salvage value is low, your vessel may be declared a total loss, say the experts from Marine Insurance Now. When evaluating vessels for total loss, insurance companies will need to compare repair costs with the boat's current market value. “If the cost of recovering and repairing your damaged boat exceeds its salvage value, then it is likely to be declared as a total loss,” the authors say. In the case of total loss, uninsured boaters will receive nothing. Yikes! However, if you were smart enough to take out collision insurance before setting sail on the open sea, you can rest assured that your insurance company will pay out an amount equal to the pre-accident market value of your boat. Phew!
The guide moves on to address common exclusions and limitations that often apply to boat collision insurance. Intentional acts of damage are not covered under boat insurance policies, and therefore salvage value will not be determined in such cases. “This exclusion encourages responsible boating practices and discourages fraudulent claims,” the guide explains. “It’s essential to always operate your boat with care and avoid any deliberate actions that could lead to damages.”
The only thing you can control at sea is your insurance policy! Make sure you're adequately protected before setting sail on your next adventure by visiting https://marineinsurancenow.com/
