Consequential Damage Coverage

Check your insurance policy closely. Your coverage may not be as complete as you think.

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Years ago, we had a near sinking on one of our test boats due to a failed 0-ring on the speed sensor through-hull installed by a previous owner. The sinking would be attributed to the failure of an O-ring, and because the sinking was consequential to the failure of a maintenance item and we did not have consequential loss coverage, the insurance would not have paid the claim. In fact, most boats sink at the dock due to failure of some minor item, and most policies dont cover the damage consequential to the failure of that item. In other words, we are sailing bare, without insurance coverage for our most serious exposure.
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