Frequently Asked Questions

For your convenience, we have assembled the answers to many frequently asked questions. If you are unable to find the answer to your question, please feel free to contact our office and one of our Professional Insurance Advisors will be pleased to assist you. Comments or suggestions on how we can continually improve the content of our website are welcome. Please e-mail us with your comments.

Watercraft Insurance

What is the difference between Actual Cash Value and Agreed Value policies?
Am I covered no matter what with All-Risk Coverage?
What is covered in the hull value of my policy?
Does my policy provide for towing?
Where can I take my watercraft?

What is the difference between Actual Cash Value and Agreed Value policies?

It has to do with how the claim is settled after a loss. With actual cash value coverage, depreciation is applied on all claims and the amount you receive is the current market value of the watercraft or damaged equipment. With agreed value coverage, the amount paid following a total loss is the amount shown on the policy.

Am I covered no matter what with All-Risk Coverage?

No. While 'all-risk' policies are superior to 'named peril' policies, they do not cover everything. Ensure that you check the exclusions of your policy to know what is not covered. An all risk policy will cover accidental damage (unless it is specifically excluded), but a named perils policy will only cover against damage from specific perils.

What is covered in the hull value of my policy?

All machinery and equipment used to operate and maintain the vessel is included. It does not include auxiliary equipment which is covered separately on the policy, i.e. trailer.

Does my policy provide for towing?

If your vessel is rendered helpless due to an insured loss and you require assistance to return to harbour, the towing portion of the policy will provide coverage. Most policies contain a deductible for towing. Also check your policy to see if there is a limit for towing.

Where can I take my watercraft?

You can take your watercraft to most inland waters within Canada and the United States, not south of 40 degrees north. On the East Coast you are limited to not north of 52 degrees north and not south of 40 degrees north within coastal waters of Canada and the United States. On the West Coast you are limited to the coastal waters of mainland British Columbia and the north and west coasts of Vancouver Island.

It is important to check with your professional insurance advisor regarding this, as each insurer may have specific navigational limits.