Hull insurance is an insurance policy specially designed for covering ship damage expenses. Hull insurance can be understood like car insurance, with a difference of being for a water faring vehicle instead of land.
Hull insurance also includes any fixtures attached to the hull of the ship as a functional part, into the definition of hull. Since the policy mostly applies to water going vessels, it is more popularly called Marine Hull Insurance, and is a part of marine insurance.
The policy plays an important role by helping boat owners to secure their vehicles against machinery damage and destruction of hull, fittings, liabilities, etc.
Mainly the policy insures against the following perils,
- Destruction of hull
- Damage to machinery
- Disbursement losses
- Ship-breaking losses
- Fittings and freight