Boat

We are called Snug Harbor for a reason. Marine coverage is a line we know well, and it is one where the difference between policies is unusually large and unusually poorly understood.

A boat policy is not a homeowners endorsement

Homeowners policies often include a small watercraft provision — typically limited to modest horsepower and a low value, with almost no liability protection on the water. For anything beyond a dinghy, that is not coverage in a meaningful sense.

Agreed value versus actual cash value

This is the most important distinction in marine insurance. An agreed value policy pays the stated amount in a total loss, full stop. An actual cash value policy pays depreciated value, determined after the loss, by the carrier. On a vessel with a long depreciation curve, the difference is substantial.

Coverages specific to the water

• Wreck removal — often legally required, frequently expensive, and not always included
• Fuel spill liability — federal pollution liability that a standard liability limit does not address
• Uninsured boater — the marine equivalent of UM, and less commonly carried than it should be
• Navigational limits — your policy covers a defined geographic area; running outside it can void coverage entirely
• Lay-up periods — reduced rates while the vessel is out of the water, with conditions attached
• Hurricane haul-out — reimbursement for moving the vessel ahead of a named storm

Marina and slip requirements

Most marinas require proof of liability coverage at a specified limit before granting a slip. Newport Harbor, Huntington Harbour and Dana Point each have their own expectations, and Gulf Coast marinas add named-storm requirements. We handle the certificates.