Total Constructive Loss Yacht Insurance

Total Constructive Loss Yacht Insurance

To understand total constructive loss yacht insurance, first it is necessary to be familiar with what constructive total loss means to your insurance company.

Constructive Total Loss

When the cost of repairing or recovering lost or damaged property along with the value of the salvage exceeds the property's value when it's repaired or recovered, it is considered constructive total loss.

Protecting Your Investment

Whether you own a motor yacht, cruiser, or sport fish, your yacht is a major investment. Total constructive loss yacht insurance protects this investment with insurance coverage that meets specific needs. Having adequate marine insurance coverage allows you to relax and enjoy your yacht, because your investment is protected.

Total Constructive Loss Yacht Insurance

Total constructive loss yacht insurance is part of a marine policy. The loss of a yacht can be partial or total. Two types of total losses exist:

  • Actual total loss - a ship or its chattels are damaged enough that they cannot make it to their destination. Another type of actual total loss involves damaged goods. If perishable or otherwise compromised, if these goods can be sold 'as is' but will not withstand transport to the original destination. For actual total loss, no formal abandonment needs to be declared.
  • Constructive total loss - before a claim of constructive total loss is granted abandonment must be approved.

Navigational Territories

Total constructive loss yacht insurance, like most marine insurance policies are "agreed value" policies. This means that the policy holder and the underwriter have agreed on a set value for the insured yacht. For pleasure boat insurance policies like total constructive loss yacht insurance most are written to cover a specific geographical area, or may cover more than on region. While policies may cover more than one region, the yacht must be based and chiefly operated within the policy's defined region.

When protecting your yacht investment with total constructive loss yacht insurance, you'll want to find an underwriter knowledgeable about these types of vessels as well as the different navigational territories.

What Your Policy Covers

While protecting your investment, it's important that you understand your yacht insurance policy. Know the answers to questions like:

  • Is towing/medical/pollution coverage included?
  • How will depreciation be calculated?
  • Is it an agreed value policy?
  • Is the correct navigational territory included? (This is where you will use your yacht)
  • Do date restrictions apply?
  • Are there restrictions as to who can operate the vessel?
  • Are liability coverage needs met?
  • Does it include requirements regarding lay-up of your yacht?

These important questions significantly impact how a potential loss is covered or not covered.

Insurance Quotes

Your yacht is an investment and should be protected with a marine insurance policy tailored to your needs. Some insurance companies write strictly boat and marine insurance policies. Total constructive loss yacht insurance policy quotes can be obtained online or with a local marine insurance agency. Finding an agency that can provide the knowledge, expertise and personal service you expect will help you enjoy your yacht with confidence knowing that your investment is covered. Well-known insurance companies like Geico Insurance, Allstate Insurance and Progressive Insurance have agents trained to help you with your marine policy needs.

All Risk Yacht Insurance

When securing an insurance policy for your yacht, an "All Risk" agreed hull value policy is a good choice. With this policy coverage, causes of loss not covered must be specifically excluded in the policy's provisions. In the case of total or constructive loss, the insurance amount stated on the declarations page is paid to the owner without deduction for depreciation. Typically, this All Risk policy covers boating safety or navigation equipment while on or off the yacht. You'd have to check the particulars of the policy you're considering as specific provisions vary from one company to another.

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Total Constructive Loss Yacht Insurance