Yacht Insurance 101 - part 3
It was mentioned earlier that yacht insurance covers the damage or loss and not the defect itself. So what is damage? Again, here is another broad term that we have to grapple with. To eliminate useless dialectics about what damage constitutes, let us just focus on damage as contemplated in a latent defect clause of your yacht insurance. Most policies would include the following lines, which covers latent defects: “…excluding the cost of repairing or replacing the defective part.” If that is the case, then does this mean that if the part is damaged by the defect, it is not covered by insurance? So what then is the purpose of having a latent defect clause? One might ask. However, the former statement is erroneous. As you supposed, if the clause is taken in that context, it would render the same practically useless because there would be nothing to cover when the clause itself excludes that which should have been covered. Instead, let’s approach this from a different angle. Taking the above example of a swamped vessel with a balsa core bottom, the defect causes the plies to separate, which leaves the hull vulnerable to the damage caused by hydraulic erosion, thus damaging the bottom. To constitute a latent defect, the part itself must not be defective and the material itself must not be defective. Rather, the defect must be due to other circumstances, such as an error in design because of faulty choice of material, where the material is defective because of an error that occurred during its processing. In other words, this latent defect is the primary reason why the water got into the core in the first place and got the hull damaged. The means by which the water leaked into the core is the defect. To put it in yet a different context, the defect is not the use of a specific material for a particular part of the vessel. Rather, it is how this material was used, which constitutes the defect. In such a case, the damage that results from that defect is covered by a latent defect clause. Now, remember that normal wear and tear can never give rise to a latent defect. The term is wholly confined to any manufacturing errors in the materials, design and workmanship. |
Sponsored Links:Related Articles:
Boat Covers / Opting For Stearns Boat Covers Boat Repair / Sail Boat Repair: Getting Help Boating / Boating Knots General Boating Info / Should You Choose Boat Dealer Insurance? Boat Covers / When Choosing Boat Covers, Canvas Can'T Be Beat Boat Covers / Designing Custom Boat Covers For Your Water Toys Boat Insurance / What To Watch Out For When Buying Boat Dealer Insurance Boating / Boating Safety Boat Insurance / Not All Boat Insurance Companies Are The Same Cruise Ships / Selecting A Cruise Line: What To Consider And Where To Look Boat Sales / Looking For A Good Deal: Boat Sales Insurance Salvage Boat Boating / Boat Cover Will Protect Valuable Investment Boating / Thought Required When Looking At Boat Docks General Boating Info / What To Look For In Florida Boat Insurance Policies Boat Rentals / San Diego Ca Boat Rentals Also In This Category:
Yacht - Sabre Yachts - Yacht Racing - Sailing Yacht - Yacht Club In Tiberon - Yacht Transport - Yacht Crew Agency - Motor Yacht Interiors - Used Yachts - Kanter Yachts - Yacht Crew - Yacht Insurance 101 - part 2 - Hatteras Yachts - Yacht Crew Agency - Yachting Safety - Tip #1 - Long Beach Yacht Club Currently Online :6 member(s), 19 guest(s): Highclimber, Kara, LazyDogg, PuppyPower, ReadyToLaunch, sorrowandsadness, Ask Jeeves, Crawler.de, InternetSeer.com, Slurp Search : |
No comments yet
size trader wooden making decide hitch ketch to ships creek ron company how moving involved o bananas things stars corinthian problem wedding hell’s cards extra materials website steel wrong including privately day florida tires organizations hundred advised turkey explore individual shasta advertised boaters swivel financial bad costs tension parents bride safety