Does Boat Insurance Cover Wreck Removal and Spills?

April 17, 2024 | by admin

Your boat sinks after an unfortunate accident and you need to get it out of the water. Wreck removal insurance coverage helps cover the costs of removing the wreckage.

What about an oil spill or leak? Your boat insurance would typically cover that, too.

In the case of wreck removal and fuel spills, it’s important to check the details of your boat insurance policy to find out how you would be covered in both of these situations.

The specifics about how boat insurance covers wreck removal and spills:

If your boat sank due to an unforeseen risk or accident, your boat insurance policy typically helps cover the expenses.

Wreck removal

Here are some exclusions that would apply to insurance coverage for a boat that has sunk:

  • A lack of reasonable care in the maintenance of your boat or intentional misuse
  • Illegal acts
  • Intentional, reckless, or malicious acts
  • Wear and tear; gradual deterioration
  • Faulty design or latent defect except when a reasonably thorough inspection could not have discovered such a faulty design or latent defect
  • Freezing damage unless you have taken reasonable precautions to protect your boat and its machinery. Reasonable precautions shall include having the boat winterized by a marine service professional in accordance with industry standards.

Speak to a Western Financial Group boat insurance expert about wreck removal coverage for your boat.

Oil spill or leak

Accidental fuel spills can have severe environmental consequences. Fuel spill liability coverage helps cover the expenses of cleaning up and mitigating the damage caused by a fuel spill from your boat.

Exclusion for accidental discharge:

  • You discharge or release any fuel, chemicals, waste, or other pollutants, unless the discharge is sudden and accidental.

Ask a Western Financial Group boat expert about oil spill or leak coverage insurance for your boat.

How do I make a claim?

The claims process begins when you report any insurable loss to your insurance provider.

You will be asked to confirm your policy details and provide up-to-date contact information.

You'll be asked to provide a detailed description, in your own words, about what happened about the sinking of your boat or fuel leakage, for example.

You will likely be contacted by an adjuster, who might also assign an additional expert to assist, such as an appraiser or contractor, depending on the type of claim.

Keep in mind that most boat insurance policies have a deductible. That’s the amount you will need to pay out of your pocket before the insurance settlement kicks in. The deductible is typically subtracted from the settlement amount.

How boat insurance protects your boat

Boat insurance covers such things as damage from vermin, wreckage removal, agreed value coverage, and liability coverage.

You can learn more about what boat insurance includes:

It’s best to insure your boat all year round to protect it, even if you’re not using it over the winter.

Speak to a Western Financial Group boat insurance expert about your boating insurance needs.

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