Valued Marine Policy
Candlefocus EditorThe 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.