What is PWC Physical Damage Coverage?

What Physical Damage Coverage May Include

Collision coverage may help pay for damage to your PWC resulting from a collision with another vessel, a submerged object, a dock, a rocky shoreline, or any other physical impact. This is the coverage that may apply when you run aground at a canyon lake, clip another boat at the marina, or hit a submerged rock at speed.

Comprehensive coverage may help pay for damage from causes other than collision — including theft, fire, vandalism, storms, flooding, hail, and UV damage from prolonged sun exposure. It also typically covers damage that occurs while the PWC is stored on a trailer or in a garage.

Agreed Value vs. Actual Cash Value

How your PWC is valued at claim time matters as much as whether you have coverage.

Actual cash value (ACV) policies pay the depreciated market value of your PWC at the time of loss. A three-year-old watercraft that cost $14,000 new may only be worth $9,000 at ACV — and that's what you'd receive for a total loss.

Agreed value policies pay the amount you and the insurer agreed on when the policy was written, with no depreciation deduction. This is generally the better option for newer or higher-value watercraft, and is worth discussing with your agent when setting up coverage.

What Physical Damage Coverage Typically Does Not Cover

• Normal wear and tear
• Mechanical breakdown not caused by a covered accident
• Damage from improper maintenance
• Racing or speed contests unless specifically endorsed