All Risks vs. Named Perils: What’s the Difference?

All Risks vs. Named Perils: What’s the Difference?

“All Risks” covers almost any damage to your boat unless specifically excluded, while “Named Perils” only covers losses caused by events listed in the policy. Here’s how they differ in practice.

All Risks: Broad Protection with Key Exclusions

All Risks coverage (often part of hull & machinery insurance) assumes your boat is damaged by any cause—not just specific ones—unless the policy says otherwise. For example, if a tree branch falls on your boat during a storm, or a mysterious leak develops, All Risks would likely pay. However, it excludes things like normal wear and tear, war, or pollution. Most All Risks policies use agreed value, meaning you and the insurer set your boat’s worth upfront. If it’s totaled, you get that agreed amount, not its current depreciated value.

Named Perils: Coverage Only for Listed Events

Named Perils policies only pay for losses caused by specific events, like fire, collision, or theft. If your boat is damaged by something not listed (e.g., a broken engine from a gradual fault), you’re out of luck. These policies are cheaper but riskier. For example, if a storm isn’t listed as a “named peril,” your claim could be denied—even if the damage seems obvious. Named Perils often uses actual cash value (ACV), which factors in depreciation, meaning you might get less if your boat is older.

Deductibles and Navigation Limits: How They Affect Both Policies

Both policy types use deductibles, but All Risks often includes a named-storm deductible for hurricane-like events. For example, you might pay 5% of your boat’s value out-of-pocket for storm damage. Also, navigation limits restrict where you can operate your boat. If you’re in an area excluded by your policy (like a foreign harbor), neither All Risks nor Named Perils will cover losses there. Always check your policy’s map of allowed waters.

• Review your policy’s exclusions—All Risks still excludes things like war or pollution.
• Compare deductibles: All Risks may charge extra for storm-related claims.
• Know your navigation limits—don’t anchor in restricted zones.
• Choose agreed value if you want predictable payouts for total loss.
• Ask if your policy covers salvage costs (e.g., towing your boat after a crash).

Actionable takeaway: If you want peace of