HENRY COUNTY MUTUAL INSURANCE COMPANY
INLAND MARINE PROGRAM
BOATOWNERS INLAND MARINE MANUAL
The primary underwriting responsibility in selecting risks rests with the agent. The agent’s knowledge of applicants and community conditions can be invaluable. These rules apply only to property owned by individuals, including eligible property under the control of executors or administrators of an estate.
UNDERWRITING RULES
RULE 1-ELIGIBILITY
- APPLICATION
Submit completed application to the Home Office within 48 hours after inception date.
Any application which is missing key underwriting information will be rejected.
- Applications are not to be submitted on the following property (refer to the company any boat that does not meet the requirements below):
1)Watercraft exceeding 30 feet in length or Sailboats exceeding 40 feet in length.
2)Boats exceeding 45 mph or 250 hp.
3)Motorboats & sailboats with sleeping facilities or galleys.
4)Boats with a value greater than $75,000 (use the combined values of the boat and motor(s) to determine the eligibility status for boats powered by outboard motors).
5)Air propelled or powered boats: amphibious vehicles; boats powered by converted automobile engines; boats used or developed for experimental purposes; converted military surplus vehicles; home-built or kit built boats: houseboats used as year-round or seasonal residences; hovercraft; hydrofoils or hydroplanes; ice boats; power boats used for racing purposes; property used for business, charter or other commercial purposes; sailboards or windsurfers; submersible watercraft.
6)Personal watercraft
- Applications are not to be submitted on the following entities:
1)Applicant, spouse, or resident of household with three or more Inland Marine losses in the past five years.
2)Applicant, spouse, or resident of household who has a history of falsifying a claim or purposely destroying their own property or who has been convicted of a felony.
3)Applicants who are companies, firms or corporations (other than family farm corporations or co partnerships).
General Rules
Boat Owner’s Inland Marine coverage may be written combination with other Personal Lines Inland Marine Coverage’s and Farm Inland Marine Coverage’s.
RULE 1-PROGRAM DESCRIPTION
- Boat Owner’s Coverage Form,
The Boat Owner’s Coverage form can be used to provide:
--only property coverage for all covered boats; or
--property & liability coverage for all covered boats.
When the Boat Owner’s Coverage form is used to provide liability coverage, a separate liability charge must be made for each boat described on the declarations.
- Principal Property Coverage’s
Coverage is provided for boats, motors, and boat trailers described on the declarations. A separate limit must be shown for each covered item.
a)Boats- “Boat” means a watercraft the limit shown on the declarations for each covered boat applies to the hull and to sails, spars, fittings, and all permanently attached equipment. This includes built-in engines, but not outboard motors. Does not include “personal watercraft”.
b)Motor- “Motor” means an outboard motor, including start up equipment and controls, batteries, electric harnesses, fuel tanks, and other pressure control tanks.
c)Boat Trailers- “Boat trailer” means a trailer designed specifically for transporting a boat.
- Covered Perils
Covered property is insured against direct risks of physical loss that are not specifically excluded by the terms of the policy form. Refer to form for details.
- Valuation/ Property Loss Settlement Provisions
Coverage applies on an actual cash values basis. Actual cash value includes a deduction for depreciation.
- Deductibles
The minimum deductible for the boatowner classes is $100. Optional deductible amounts of $250, $500 and $1000 are available. The deductible amount will be shown on the declarations page.
- Principal Liability Coverage
When Watercraft form is used to provide liability coverage, Personal Liability Coverage & Medical Payments, apply to exposures related to the use of the boats, motors, and boat trailers described on the declarations and to exposures arising out of newly acquired property, and non-owned boats as described in the policy.
a)Personal Liability Coverage- Coverage pays damages for which an insured is liable by law because of bodily injury or property damage arising from a covered boat exposure.
b)Medical Payments-Coverage pays medical expenses for accidents arising from a covered boat exposure. Coverage pays the medical expenses of insured’s, as well as other persons injured in a covered accident.
c)Basic Limits- The basic limits for the Principal Liability Coverage’s are:
--Personal Liability coverage $100,000 per Occurrence
--Medical Payments coverage$2500 per Person
Higher per Occurrence and per Person limits are available.
RULE 2-POLICYWRITING INSTRUCTIONS
- Policy Assembly
The Inland Marine Boat Owner’s Coveragecannot be written alone on a Henry County Mutual policy. However, it may be packaged with forms that cover other personal lines (including farm) inland marine coverage.
- Effective Date
The effective date is shown on the front of the declaration pages.
- Loss Payable Clause
A loss payable clause may be added to a policy as needed. Loss to covered property can be made payable to the insured and to loss payees or other who have an interest in the property.
- Territory
Boat Owner’s Coverage form covers lossesthat occur within the United States of America or Canadaincluding the inland lakes, tributaries,rivers, and navigable waterways; the Great Lakes; or coastal waters that extend 5 statute milesor less from the coast of either the United States of America or Canada.
RULE 3-POLICY TERM
Policies will be written for a term of one year and renewed annually. Policies are issued at the annual rates, forms and endorsements in effect at the beginning of the policy period.
RULE 4-MINIMUM PREMIUM
The minimum premium shall be $35.00 for each policy. This minimum premium is to be submitted with the application on all new business. This is a fully earned minimum premium. If the Company rejects the application there will be a pro rata charge for the amount of time the coverage has been provided. If cancellation is requested by the insured, Henry County Mutual Insurance will retain the minimum of $35.00 or the pro rata amount earned whichever is greater.
RULE 5-POLICY CHANGES
All changes requiring premium adjustments will be computed on pro rata basis. Any additional premium developed for changes made after the policy is issued applies in addition to any applicable annual premium that applied at policy inception.
RULE 6-CANCELLATION
If insurance is cancelled, return premium, if any, is computed on a pro rata basis. If cancellation request is received before policy is issued & requested date of start, full premium amount will be returned.
RULE 7-PREMIUM BASE-PROPERTY
The property coverage (including motors and trailers) premium base is the dollar amount to which the rate is applied to determine the premium. All property rates in this manual are expressed as annual rates per $100 of insurance. The property rate structure is based upon full insurance to value.
RULE 8-WAIVER OF PREMIUMS
Additional or return premiums of $3.00 or less that result from a mid-term policy change may be waived. However, a return premium of $3.00 or less must be paid if requested by the insured.
BOATOWNERS
- Eligible Property
Boat owners Coverage covers all types of Inboard Boats, Inboard-Outboard Boats, Outboard Motors, and Trailers used for transporting boats. The motor must not exceed the certified horsepower capacity of the boat. Physical damage may be written with or without liability coverage.
a.)Boats- “Boat” means a watercraft. The limit for each boat should be the full actual cash value of the covered boat including the hull, sails, spars, fittings, and all permanently attached equipment. This includes built-in engines, but not outboard motors.
b.)Motors- “Motor” means an outboard motor, including start up equipment and controls, electric harnesses, fuel tanks, and other pressure control tanks. The limit for each outboard motor should be the full actual cash value of the covered motor.
c.)Boat Trailers- “Boat trailer” means a trailer designed specifically for transporting a boat. The limit should be the full actual cash value of the covered trailer.
- Liability
When used to provide liability coverage, the Personal Liability Coverage and Medical Coverage limits must be the same for all boats described on the declarations. A separate liability charge must be made for each boat. Liability coverage requires physical damage coverage.
Forms
All covered property must be scheduled on the declarations. The schedule must contain a year, make, model, serial number, motor numbers, description and limit of coverage for each item.
- Optional Coverages
- Newly Acquired Property
The Boat Owner’s Coverageform provides additional coverage for newly acquired property.
- Miscellaneous Property
Miscellaneous property includes boating equipment, accessories, and other detachable equipment such as oars, anchors, tarpaulins, lights, cushions, life preservers, fire extinguishers, fuel containers or horns. Certain exclusions & restrictions apply (see policy form).
The Boat Owner’s Coverageform provides a limited amount of coverage for Miscellaneous Property. Additional coverage for miscellaneous property may be purchased for an additional premium charge. The additional limit of coverage for this property must be shown on the declarations. A deductible for this coverage is mandatory; the minimum deductible is $100.
1Revised 01-01-2013