This policy guards your boat, motor, and equipment against theft, fire, vandalism, wind, lightning, and other acts of nature. Any official drivers of your boat will be protected if you crash into an underwater banked object. In addition, your boat equipment is covered up to a certain value. You must select between an Actual Value and Agreed Value policy to determine exactly how much you will be covered for if your boat should ever sustain damage.
“ALL-RISK” COVERAGE
The broadest form of coverage is “ALL-RISK”. An “ALL-RISK” policy insures approved general merchandise in the event of physical loss or damage from any external cause. This includes new, packaged goods without unusual susceptibility to loss from breakage, pilferage, or the nature of the goods themselves.
FREE OF PARTICULAR AVERAGE (FPA) COVERAGE, AMERICAN CLAUSE
FPA is limited coverage that usually applies to used merchandise, waste materials and goods shipped subject to an on-deck bill of lading. It covers partial and total losses due to FPA perils. FPA perils include the sinking, stranding, burning or collision of the vessels or catastrophic perils on shore such as earthquake, derailment, collapse of dock, fire, etc.
