Watercraft Insurance Definitions

Actual cash value

Value of a watercraft, engine or other piece of equipment after depreciation has been applied. This value is usually determined at the time of a loss.

Agreed value

Value of watercraft as agreed upon between insured, agent and underwriter. Amount should equal present market value. This is the amount paid in the event of a total loss, with the hull deductible waived.

Bass boat

Small, fast watercraft used for both recreational and tournament fishing. Watercraft is characterized by low freeboard, lightweight & high performance.

Beam

The greatest width of the boat.

Bow

Forward part of the boat

Business entertainment

Use of watercraft to entertain business clients & associates when no money or payment for use of watercraft is implied or agreed to.

Business use

Use of watercraft for financial gains. This includes: conducting business transactions, transportation of cargo, livestock or people.

Carbon fiber

Graphite fibers when combined with epoxy resin (glue) form to make a strong light material used to make sailboat spars and reinforcements for watercraft hulls

Catamaran

A twin-hulled boat, with hulls side by side.

Charter

Leasing watercraft to another individual or group in return for payment.

Coastal waters

Waters of the Atlantic, Pacific or Gulf of Mexico or immediately adjacent or directly connected to one of these bodies of water.

Cubic centimeter (CC’s)

A measurement of an engine’s internal physical size, not an engines horsepower. This is most often referred to with personal watercraft (PWC’s)

Cubic inch displacement

A measurement of an engine’s internal physical size, not an engine’s horsepower.

(C.I.D.)

This is most often referred to with inboard and inboard/outdrive engines.

Engine rated horsepower

Measurement of the horsepower taken directly from the engine itself. This measurement is not taken from the propeller, pump or, outdrive.

Exhibition

Offering boat for public display. Example: to place watercraft in a boat show.

Fair market value

Price for which a watercraft could realistically be sold as equipped and in its present condition.

Freeboard

Distance between the water and the deck.

Gran Prix sailboat

Sailboat specifically designed for racing not cruising.

High performance

Watercraft than can exceed 50 miles per hour.

Horsepower

Unit of measurement used to determine power and output of an engine.

Hull

Main body of a watercraft

Inboard/Outdrive

Engine mounted in the watercraft, usually near the transom, and is attached to a unit outside the watercraft that holds the propeller.

Inboard motor

Engine mounted in the watercraft in which propeller shaft protrudes through the bottom of the boat directly from the engine.

Inland waters

Lakes and rivers away from the coast with no direct access to the ocean.

Jet boat

Watercraft that is propelled by an engine connected to a jet pump within the boat. This boat has no external propeller.

Jet pump

Water pump that takes in water from an opening in the bottom of a watercraft and forces the water through an opening or tube in the stern of the boat.

Jones Act

Covers the owner’s liability to captain and/or crew.

Marine survey

Independent evaluation of watercraft’s value and condition by a professional marine surveyor. A complete marine survey consists of three primary components: (1) Accurate and detailed description of watercraft, (2) Fair Market Valuation of watercraft, (3) List of deficiencies and recommendations for repair.

Marine Surveyor

Person whose primary occupation is that of conducting marine surveys. Qualified marine surveyors usually belong to and are accredited by a professional marine surveyor organization.

Megayacht

Watercraft of $1,000,000+ in value with at least one full-time paid captain or crew.

One-design sailboat

Racing sailboat, which is designed and built within pre-defined parameters so that all boats in its class are exactly alike.

Outboard motor

Engine mounted with clamps on the outside of boats hull.

Personal effects

Personal property brought from home and not left permanently aboard the watercraft.

Personal watercraft

Watercraft less than 13′ in length designed to be operated by a person sitting or persons sitting, standing or kneeling on the watercraft rather than within the confines of a hull.

Ski boat

18′ – 22′ watercraft used primarily for water-skiing. Watercraft usually has an inboard motor and max. speed between 40 – 50 mph.

Snowbird

One who travels south in the winter and returns north in the summer.

Snowbird endorsement

Endorsement warranting that the insured watercraft be north of a set location between two particular dates. This avoids exposure to hurricanes & tropical storms.

Spars

General term for masts, booms, etc.

Stern

The aft part of the boat.

Tidal waters

Waters subject to the daily tides. Example: oceans, bays, gulfs, inlets, inter-coastal waterways and tidal regions of rivers.

Transom

The stem cross-section of the boat

Trimaran

A three hulled boat, with hulls side by side. The middle hull is usually larger than the others, contains the cockpit and any amenities.

United States Long Shore and Harbor Workers Act

Owner’s liability coverage workers hired to perform “seaman like duties” on the insured watercraft such as repairs, upgrades and modifications.