Hull insurance is a process of insuring your boat or ship, its equipment and machinery, against any sort of damage. A hull insurance will usually cover the ship’s hull, railing, life boats and so on.
In Marine Insurance, the insured items are mainly 2 types, one is for the cargo and the other is for the carrier, the vessel (ship). The insurance of ship is known as Hull Insurance (also known as Hull and Machinery Insurance).
Hull insurance is generally seen as synonymous to cargo insurance but these are essentially different. Cargo insurance policies provide coverage to the goods that are moved on to and off a ship. Just like any other insurance policy, one is supposed to pay a premium to get the coverage.
In most instances, a hull insurance policy will cover all the damage, unless something is specifically excluded from the insurance policy. In some cases, insurance providers offer policies that only cover the damage from specifically mentioned incidents. Most commonly excluded instances include damage from insects, from usual wear and tear, marine life and zebra mussels. Some of the policies may also exclude the damage caused to the machinery such as to the engines.
Just like any other insurance policy, the terms, conditions, deductibles and coverage vary from provider to provider. One should carefully read and compare the provider’s contract before buying this policy.