- Joined
- Aug 29, 2012
- Messages
- 2,690
- Location
- Good Ol' US of A!
- Vessel Name
- Pau Hana
- Vessel Make
- 1989 PT52 Overseas Yachtfisher
Unless specifically stated in your policy...the salvage costs usually come off the top of your agreed upon value.....many people don't know this and things go south from there.
I have waited often on salvaging boats because the owner and salvage company have gone round and round over this issue.
True depending on the policy language. True Yacht policies (based on coverage vice vessel size and all risk vice named perils) hold salvage as an "in addition to" coverage that does not affect the agreed value.
That's one of the main differences between a "boat policy" and a "yacht policy". What you stated is more representative of a boat policy. The boat is insured for a defined amount and any salvage and environmental cleanup costs are deducted from that amount and the owner gets the remainder...if there is any.
On a yacht policy the boat is insured for a set amount. Any environmental or salvage costs are handled separately from the value of the boat.
If you boat owners don't know which way your policy would handle salvage or environmental costs, it might be worth a call to your agent.
Correct, correct, and correct.
depends on your policy but both BoatUS and Sea Insure (Sea Tow) have printed warnings about it in the past. Likely because of the middleman position they get into when performing salvage and the owner gets told by his agent about the fine print.
yacht policy, boat policy, gimmick policy...whatever...just make sure you know what yours says in case.....
No gimmicks in policy language- it's pretty clear, The problem is that people try to go with either:
- The lowest cost policy regardless of coverage.
- Their home and auto agent who doesn't know anything about marine policies.
GFC is absolutely correct- the yacht policy is an agreed value that, for a total loss, is paid in full to the client without depreciation or deductible applied. Environmental and salvage coverages are not deducted from the hull coverage, but are paid in addition (as separate sublimits) to the payment made to the insured for the total loss of the vessel.
The limits for salvage charges are generally equal to the agreed value of the vessel.