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Valued Marine Policy

Valued marine insurance is becoming an increasingly valuable resource for those who own boats, ships, and other types of property that cruise or sail over the waters. Valued marine policies provide protection against physical loss, damage, and destruction of marine property due to a variety of risks such as storms, lightning, collision and even some types of pirate attacks. Valued marine policies have certain advantages over more traditional unvalued marine policies. Not only do they provide greater protection in the event of a total loss, but they also eliminate the need for policyholders to file a claim in order to get the full market value of the boat or ship.

The other defining feature of valued marine policies is that they require policyholders to agree to a pre-set value for the marine property to be insured prior to the policy being issued. This value is separate from the market value of the boat or ship and is used to determine the payout in the event of a total loss. It also insulates policyholders from the risk of depreciation in the event of a partial loss. That value is locked in when the policy is issued and is only paid out if the claim results in a total loss.

Valued marine policies also provide coverage for the boats and ships in transit, even those that are in international waters. These policies provide coverage for destination ports, cargo, and any damage that is done to the equipment of the ship during transit. Additionally, being aware of location-specific laws and regulations is also essential, as it can influence coverage from the marine policy.

All in all, many factors must be taken into account when it comes to choosing a valued marine policy. Those who are looking for stronger protection for their boats and ships, or who frequently transit waters in international waters, should consider the advantages of valued marine policies over more traditional unvalued marine policies to ensure that their property is covered in the event of a loss.

Glossary Index