Most boat owners policies provide physical damage coverage on which basis?

Many boat owners policies typically provide physical damage coverage on an open peril basis, which means that coverage is provided for all risks of physical damage to the boat, unless specifically excluded in the policy. This comprehensive approach allows policyholders to feel more secure knowing their boat is protected against a wide array of potential damages, such as accidents, theft, vandalism, and even some natural disasters.

In contrast to the open peril basis, a named peril policy would cover only those specific risks explicitly listed in the policy. This limitation means that any damage occurring due to unlisted risks would not be covered, potentially leaving the policyholder vulnerable. Thus, the open peril basis is generally more favorable for boat owners who want broad protection.