Hull & Machinery
The Hull & Machinery coverage includes loss or damage of the vessel's hull, machinery and fixed equipment. This type of coverage insures against physical loss of the vessel due to covered perils such as sinking, stranding, collision and fire. Machinery is the equipment that generates power to navigate the vessel and other machinery such as generators that provide electricity and lighting. Tenders are usually included in the primary hull coverage.
An Agreed Value policy is the fair market value of the vessel or a pre-determined amount agreed upon by the insured and the insurance company at the time of issuance. The "agreed value" is usually the purchase price of the hull and equipment. In the event of a total loss, the policy will pay the stated amount on the face of the policy without applying depreciation or deductibles.
An Actual Cash Value policy pays the vessel's current and depreciated value at the time of loss. In the event of a total loss, this type of coverage will allow you to replace the vessel with a used vessel that's comparable to the loss.
An All Risk policy provides coverage for any loss unless it specifically excluded on the policy.
A Specified Perils policy provides coverage for only specific losses that are named on the policy.