Maritime Salvage Laws May Impact Your Policy, and Your Wallet Warns Marine Insurance Advisor

National boat insurance company Wallace Welch & Willingham (http://www.marineins.com) warns Florida boat and yacht owners to familiarize themselves with maritime salvage claims guidelines before taking to the waters.

Tampa, FL (PRWEB) August 3, 2010

With boating season in full swing and many boats on the water during the summer months, national boat insurance company Wallace Welch & Willingham (http://www.marineins.com) warns Florida boat and yacht owners to familiarize themselves with maritime salvage claims guidelines before taking to the waters. Wallace Welch and Willingham Marine Insurance has seen an increase in the number of boat and yacht owners who accept help when stranded on the water without knowing the financial consequences that could be involved if that help is deemed to be a salvage claim instead of a tow.

Advisors in Marine Insurance, Wallace Welch and Willingham specializes in providing marine insurance to recreational boaters and the commercial marine industry.

Maritime salvage claims occur when the vessel needs assistance and the vessel is in peril. A boat/yacht that has fallen into peril has been affected by extraordinary forces of nature; for example stranding, sinking, collision, fire or heavy weather.

A simple tow, on the other hand, is performed when the vessel is not in peril. A towing reimbursement loss may occur if vessel has a dead battery or is out of fuel. A towing company will normally charge a flat fee per hour for their towing services. Receiving towing services will not normally affect your loss history or boat insurance premiums.

A boater who accepts help when their boat/yacht is in peril could have a salvage claim in addition to a hull claim. Factors like the difficulty of the salvage operation, the risk that was involved to the salvor, and the value of the vessel saved would be components of the loss settlement. The amount of a salvage award is determined by the courts or negotiated between the salvor and the claim adjustor. The amount the boat or yacht owner may owe to the salvor could be up to 50 percent of the vessel’s value.

In the event that a boater is forced to pay a large claim to a salvor, often it is the boat insurance or yacht insurance company that must pay on the boater's behalf, and that claim may impact your loss history. This may cause the boat or yacht insurance premium to increase (at renewal) which can have a long term effect on the mariner.

"If you find yourself stranded out on the water or in need of help, make sure you clarify in advance with the party helping you whether the service they are providing is towing or salvage services" advises the Marine Insurance division at Wallace Welch and Willingham. "If you do not have boat or yacht insurance you may find yourself in court trying to maintain ownership of your vessel or paying out of pocket a large claim to the salvor."

About Wallace Welch & Willingham:

Based in Florida, Wallace Welch and Willingham Marine Insurance specializes in competitive and comprehensive yacht insurance and boat insurance policies in Florida and nationwide. For more information on salvage laws and how this may affect your boat insurance policy, or to obtain a marine insurance or yacht insurance quote, visit http://www.marineins.com.

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