Insurance industry lingo you need to know
11-10-2015, 12:34 PM
#1
HP Marine Ins. Specialist
Thread Starter
Join Date: Mar 2008
Location: Insuring any kind of boat
Posts: 985
Likes: 0
Received 0 Likes
on
0 Posts
Insurance industry lingo you need to know
What I have found over the years in the insurance industry is that an educated client is the best kind of client. I hope that my stance educating not only our clientele at Wake Zone, but the industry as a whole has been apparent. I feel that when we are all on the same page, it creates for a strong base to build a lasting agent/insured relationship from. One that comes from a place of understanding. We want you to understand your policy, whether you are buying from us or one of our competitors.
I know for some of you, you already know this information. But every day we have new people entering into the sport of performance boating and they too need this info to empower them in their future decisions.
There are tons of terms you should know as a policy holder and you can refer to the beginning pages of your insurance policy to read further, but here are a few of the basic but more crucial ones to know.
LAY UP PERIOD means the period of time in which you take your boat out of the water and store it away for winter. You are given a reduction in premium for having this added to your policy. Your boat is still covered for storage and transit exposures during this period of time. A boat policy is a YEAR ROUND exposure policy, even if you have a lay-up on the policy.
NAVIGATION – This is the body of water where your boat is insured to operate. IF you leave your navigational territory you will have NO COVERAGE while outside that area. Most often, you need to contact your agent for an endorsement to go outside this designated area. This area is defined on the declarations page of your insurance policy.
NAMED OPERATOR – A named operator is the only person on a policy that is covered by the insurance while operating the insured vessel. If you are on a named operator policy, you must endorse each operator to the policy, even family members. This applies even in emergency situations.
PERMISSIVE USE - A permissive use policy is one that covers the listed operators on the policy (usually licensed drivers in the household) and anyone that those designated operators grant permission to use the vessel to. Example – I am insured on my boat. I give permission for my best friend to take my boat out and use it on their own (with or without me in the vessel). Most HIGH performance policies do not have this.
AGREED VALUE – The amount the vessel is insured for. At the time of a total loss, this is the amount that you are paid. There is no depreciation factored in. The amount on the declarations page, that you and the Company previously agreed to, is what you get a check for.
ACTUAL CASH VALUE – This is a type of loss valuation, how they calculate the amount you are paid out in the event of a total loss to your vessel. ACV as it is often referred to as, means the cost to repair or replace property with new materials of like kind and quality, less allowance for physical deterioration and depreciation, including obsolescence.
I know for some of you, you already know this information. But every day we have new people entering into the sport of performance boating and they too need this info to empower them in their future decisions.
There are tons of terms you should know as a policy holder and you can refer to the beginning pages of your insurance policy to read further, but here are a few of the basic but more crucial ones to know.
LAY UP PERIOD means the period of time in which you take your boat out of the water and store it away for winter. You are given a reduction in premium for having this added to your policy. Your boat is still covered for storage and transit exposures during this period of time. A boat policy is a YEAR ROUND exposure policy, even if you have a lay-up on the policy.
NAVIGATION – This is the body of water where your boat is insured to operate. IF you leave your navigational territory you will have NO COVERAGE while outside that area. Most often, you need to contact your agent for an endorsement to go outside this designated area. This area is defined on the declarations page of your insurance policy.
NAMED OPERATOR – A named operator is the only person on a policy that is covered by the insurance while operating the insured vessel. If you are on a named operator policy, you must endorse each operator to the policy, even family members. This applies even in emergency situations.
PERMISSIVE USE - A permissive use policy is one that covers the listed operators on the policy (usually licensed drivers in the household) and anyone that those designated operators grant permission to use the vessel to. Example – I am insured on my boat. I give permission for my best friend to take my boat out and use it on their own (with or without me in the vessel). Most HIGH performance policies do not have this.
AGREED VALUE – The amount the vessel is insured for. At the time of a total loss, this is the amount that you are paid. There is no depreciation factored in. The amount on the declarations page, that you and the Company previously agreed to, is what you get a check for.
ACTUAL CASH VALUE – This is a type of loss valuation, how they calculate the amount you are paid out in the event of a total loss to your vessel. ACV as it is often referred to as, means the cost to repair or replace property with new materials of like kind and quality, less allowance for physical deterioration and depreciation, including obsolescence.
