As many of you know, SkiSafe provides insurance for recreational boats including center consoles, inboard motor yachts, pontoons, jet skis, sailboats, ski and wake inboards, yachts, and more. We know insurance itself can be a bit technical and confusing. While our policies are written in a way that’s easy to read and understand, there are definitely some insurance terms that aren’t everyone’s cup of tea. Well, we’re here to change that and break it all down for you. Here are some common insurance terms you may find in your policy or when filing a claim.
Actual Cash Value
The fair market value of the craft.
Your representative in the claims department. When filing a claim, a licensed adjuster will record the facts of the incident and communicate the information needed to quickly settle your claim.
A term referring to another other party’s insurance carrier.
A person who sells insurance.
A coverage option where the value of the craft is agreed upon and locked in throughout the life of the policy.
A coverage option that provides coverage for any loss not specifically excluded in the policy. This is a broader and more protective policy than a Named Perils Policy.
A device that blocks theft of the watercraft.
A process that determines the value of the vessel or the extent of damages.
An alternate term for insured. Someone who has an insurance policy, otherwise known as the policyholder.
The party that is liable for damage.
A temporary agreement that the policy is in effect.
Bodily Injury and Property Damage Liability
A coverage option that protects an insured against the injuries sustained by a passenger or another boater, or for the damage to another boater’s property.
The termination of an insurance policy before the end of the policy period.
The insurance company or insurer.
A request by the insured for payment under the terms of the policy.
The person who examines, investigates, and settles a claim.
The protections provided by the insurance policy.
The maximum amount your policy covers for a particular type of loss.
The loss or damage to the insured property.
The amount the policyholder agrees to self-insure against certain losses. There is no deductible on bodily injury or property damage liability.
The amount the property has decreased in value due to wear and tear, and time. Depreciation is not considered an insurable loss.
A premium discount due to certain conditions meet by the policyholder.
An addition to an insurance policy that may add, remove or change the terms of coverage.
An assessment of the cost to repair a damaged craft.
A restriction on the policy that limits or excludes coverage for specific perils.
SkiSafe’s electronic billing and automatic payment system that you can review online.
The contract of your insurance policy or coverage selection questionnaires.
Something that increases the chance of damage or an accident.
The verification of the vessel’s physical condition.
The person covered by the insurance policy.
The company that provides insurance.
When the vessel is not in use, most likely during the winter months. Policyholders are usually eligible for a discount when electing to have a lay-up period.
Liability imposed by the law, rather than from a contract.
Responsibility for the injury or damage to another person.
A type of coverage that protects against a claim arising from injuries or damage to another person or property.
A claim or charge on the property as a security for payment of a debt.
A person or company who has a financial stake in the property up to the amount borrowed.
The maximum amount of protection purchased for a given type of coverage.
Limit of Liability
The amount stated in the policy that references what the insurance company will cover.
A dollar amount of damage or injury.
Intentional damage of personal property with malicious intent.
Medical Payments Coverage
A type of coverage for voluntary medical payments to a third party arising from the use or ownership of the craft.
To make misleading written or verbal statements.
A type of discount for those who insure more than one craft with the same company.
The person or entity listed on the policy declarations page.
A policy type that provides coverage for the risks specifically named in the policy terms.
Named Storm Coverage
Provides protection for the damage to a craft caused by a tropical depression, storm, or hurricane.
The policy will specify the navigation territory and limits within which coverage is provided.
When the insurer decides not to renew a specific policy.
An event which causes an unexpected injury or damage.
SkiSafe’s online dashboard that allows a policyholder to review policy documents online.
A danger or hazard that causes damage or a loss.
Portable property or equipment aboard your boat that may be covered by your policy.
Damage to physical property.
A written contract between the insured and insurer.
A change or alteration made to the policy.
Policy Declaration Page
A document that will outline the specifics of the policy, including limits and deductibles.
The named insured on the policy.
The price of the policy that the insured pays in exchange for coverage.
Proof of Loss
A form of documentation regarding the extent of a claim.
Property Damage Liability Coverage
A type of coverage that pays for damage to someone else’s property where the policyholder is at fault.
The projected cost of premium that will be charged in exchange for coverage.
A synonym for premium.
A contract that states all of a party’s obligations have been fulfilled.
The date at which the policy expires and the renewed policy begins.
A type of coverage where a total loss may result in a replacement of the craft.
The chance of damage or loss.
The taking of another’s property with intent to permanently deprive ownership.
A person or entity not involved in the contract, but with an interest in the agreement.
Towing and Roadside Assistance
A type of coverage that reimburses the policyholder for towing costs on water or land.
The person who evaluates the risk, agrees to issue the policy, and assists the policyholder in making changes or answering questions.
The destruction of property.
A manufacturer’s guarantee and responsibility to repair or replace a damaged product.