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What to Do When Your Boat Insurance Company Acts in Bad Faith

Damaged boat awaiting repair in Texas You have a marine insurance policy to cover damages to your boat or accidents, injuries, and other losses on your vessel. When your boat was damaged in a collision or by severe weather – or someone aboard got hurt or died – you probably expected your insurer to do right by you and your family. Instead, the company denied or underpaid your claim, leaving you wondering if it acted in bad faith and if you have grounds for a lawsuit. Sound familiar? We explain what you should know about Texas boat insurance coverage, marine insurance bad faith cases, and how The Voss Law Firm, P.C. helps clients fight for fair compensation.

Understanding Your Marine Insurance Coverage

You have marine insurance, but do you know which kind you have or what your policy covers? Here’s a look at types of boat insurance coverage, common reasons for filing a claim, and what these policies typically exclude. 

Policy Types

  • Hull. A hull insurance policy covers any physical loss or damage to a boat.
  • Cargo. A cargo policy covers physical loss or damage to goods or cargo. This type of policy may cover single or multiple shipments over a specific period. 
  • Protection and Indemnity (P&I). A P&I insurance policy covers the boat owner’s liability for bodily injury or death or damages to building structures that result from owning the vessel. 

Marine insurance claims often involve damages resulting from severe weather events, fires or explosions, theft, collisions with other boats, water damage to a vessel’s internal components, or the injury or death of a person on board. Though marine insurance often covers such damages, there’s a lot these policies can exclude.

Common Boat Insurance Policy Exclusions

  • Ordinary leaks
  • Normal wear and tear
  • Animal or insect infestations
  • Damage caused by marine life
  • Improper off-season storage or transportation
  • Owner or operator negligence or willful misconduct 
  • Damage caused by a driver not named on the policy 
  • Vessel modifications
  • Accessories, such as life jackets, anchors, or GPS

Read through your policy to ensure you understand what it does – and doesn’t – cover. Have questions about your coverage? Ask your insurance agent for clarification. 

Texas Boat Insurance Bad Faith Cases

Boat owners pay for insurance coverage to recover damages if there is an accident or injury on their vessel. Unfortunately, most insurance companies aren’t looking out for your best interests because settling claims fast – and paying out as little as possible – is better for their bottom line. 

Examples of Bad Faith Insurance Practices 

  • Failing to investigate a claim
  • Denying coverage without a just cause 
  • Failing to communicate vital information to the claimant
  • Not responding to a claim promptly
  • Offering an unreasonably low settlement amount
  • Failing to provide a reasonable explanation for a denied claim 
  • Missing time-sensitive deadlines

Getting Help

If you believe your insurance company is acting in bad faith, consulting an attorney to explore your legal rights and options is absolutely essential. A knowledgeable and experienced lawyer can conduct a thorough investigation to determine if your insurer acted in bad faith, help you file a lawsuit, and protect your rights and interests throughout the litigation process.

Discuss Your Situation With a Skilled Texas Insurance Claims Attorney 

Did your boat insurance company unfairly deny or devalue your claim? Let the skilled insurance claims attorneys with The Voss Law Firm, P.C. review the case. We’ve helped countless policyholders understand their rights and fight bad faith insurance practices. Ready to find out what we can do for you? Complete our online contact form or call our office at 888-614-7730 to schedule an appointment for a free consultation. 


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The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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