The Agreed Value is the fair market value of the vessel that is agreed upon between the insured and the insurance carrier. Under Agreed Value policies, if there is a total loss, then the full agreed value is paid without any depreciation. When there is a partial loss, the company will replace old equipment with new to bring the vessel back to its&# [..]

The position which exists when the cost of repairing or recovering lost or damaged property plus the value of the salvage would exceed the property's value when repaired or recovered.

The deductible is the portion of a loss that is the responsibility of the insured. There is an inverse relationship between deductible and premium. The higher the deductible, the lower the premium. The hull deductible is typically 1% of the hull value. Credits are available for higher deductibles. Lower deductibles are assigned for specific equipme [..]

This applies when insurance is terminated before the expiry date of the insured period. The earned premium attaching to the period during which the underwriters have been on risk.

Typical broad exclusions include dishonest, intentional, and illegal acts, fraud, wars, seizures, and nuclear radiation. The marine exclusions include wear and tear, deterioration, corrosion, osmosis, electrolysis, or design defects. Check with your agent for a full list of exclusions that apply to your specific policy.

A statement made to the underwriter before acceptance of risk which is material to the decision in accepting and rating the risk.

The most direct cause of loss, that is, the most effective, but not necessarily the last, in a series of events.

Charges incurred by an insured in averting or diminishing a loss. They are recoverable in addition to the full sum insured.