Mastering the dozens upon dozens of boat insurance terms can be a daunting task. From navigational limits to disappearing deductible to uninsured boater, there are numerous terms that make up the details of your policy. But what do they all mean?
Read part II of our boat insurance terminology guide below. For part I, click here.
- Covered Person: Any person or legal entity that is permitted to operate the boat by the owner who is also considered covered when operating the boat. This usually does not include a paid captain, crew, or employee, although coverage may be available.
- Dinghy: A small craft used to service the insured boat.
- Disappearing Deductible: If you do not have a claim since the start of the policy, your standard deductible will decrease each subsequent year until it disappears entirely.
- Exclusion: Something that is not covered because the policy specifically states that it is excluded.
- Insured Property: Any boat, trailer or other property identified for coverage in the terms of your policy. This property is protected against damage with in accordance with the policy’s terms.
- Laid Up: When the insured boat is out of commission, and on land if the policy requires it.
- Lay-Up Period: The period of time when your boat is laid up and out of use.
- Limit of Liability: The amount of coverage provided under your policy protecting against bodily injury and property damage to third parties.
- Machinery: The system that is involved in making the boat operable.
- Named Windstorm: A tropical depression, storm, or hurricane as designated by the National Weather Service or the National Hurricane Center.
- Navigational Limits: The territory in which your policy provides coverage for navigation.
- Personal Watercraft: Usually a boat less than 13 feet in length upon which the operator sits or stands, commonly known as a jet ski.
- Policy Period: The period of time where the policy is active, with starting and expiration dates and times
- Private Pleasure Use: A boat that is used only for your personal, recreational use. The boat is not covered if it is ever used commercially.
- Trailer: Used to transport the boat.
- Uninsured Boater: Coverage that protects you in the event of an accident with a third party who does not have boat insurance.