I arrived at the marina to find my 30-foot center console underwater—only the T-top was visible. A seacock had failed. I called a salvage company, and they quoted $15,000 to raise the boat and contain the fuel. My boat was insured for $20,000, so I thought I was covered. Then the adjuster told me, “Your wreck removal limit is $1,000. You owe the salvor $14,000.”
Key Takeaways
- Hull Value != Wreck Removal: This is the most dangerous confusion in marine insurance. “Hull Coverage” pays you for the lost boat. “Protection and Indemnity” (P&I) or specific “Wreck Removal” pays to get the carcass out of the water.
- Statutory Requirement: The government (Coast Guard/EPA) requires you to remove a wreck that is a navigation hazard or pollution threat. You cannot just abandon it.
- The “Separate Limit” is Vital: Good policies have a Wreck Removal limit that is separate from and equal to the Hull Value (or at least $500k liability). Bad policies bundle it or cap it at 5-10%.
- Constructive Total Loss: If the cost to raise + repair exceeds the value, it’s a total loss. But you still have to pay the salvage bill.
The “Why” (The Trap)
The trap is “Legal Liability Only” policies.
Some cheap policies only pay for wreck removal if you are legally required by a court order to remove it. If the marina just wants it gone, the insurance might hesitate.
The bigger trap is the Sub-Limit. Raising a boat is expensive (divers, barges, airbags). A $1,000 limit is a joke in 2026.
The Investigation (I Checked the Limits)
I looked at the Declarations Pages of three common policies.
BoatUS
- Policy: “Wreck Removal is a separate limit up to the liability limit (e.g., $100k or $300k).”
- Verdict: Excellent. They pay to raise it, AND pay you the hull value.
Progressive (Basic)
- Policy: “Wreck removal generally included in the liability limit.”
- Verdict: Good, provided you bought high liability limits ($300k+). If you bought state minimums, you are in trouble.
“Cheap-O” Marine (Generic)
- Policy: “5% of Hull Value.”
- Verdict: Bankruptcy waiting to happen.
Comparison Table
| Scenario | Separate Limit (BoatUS) | Included in Liability | % Cap (Cheap Policy) |
| Hull Value | $20,000 | $20,000 | $20,000 |
| Salvage Bill | $15,000 | $15,000 | $15,000 |
| Insurance Pays Salvage | $15,000 | $15,000 | $1,000 |
| You Pay Salvage | $0 | $0 | $14,000 |
Step-by-Step Action Plan
- Do Not Sign “Lloyd’s Open Form” (LOF): When the tow boat arrives, do not sign an open-ended salvage contract if you can avoid it. Ask for a “Fixed Price” or “Time and Materials” quote. LOF allows them to claim a percentage of the boat’s value as a reward.
- Call Insurance First: Most carriers have preferred salvors (like SeaTow or TowBoatUS). If you call a random guy, the insurer might dispute the invoice.
- Check Your Policy Limit: Look for “Wreck Removal.” If it says “$5,000,” call your agent and raise it to $100,000 immediately (if the boat hasn’t sunk yet).
- [IMAGE: Declarations page highlighting ‘Wreck Removal Limit: $500,000’]
- Mitigate Pollution: The biggest cost is often the fuel spill. Plug the vents if safe to do so.
FAQ
Does my SeaTow membership cover raising a sunken boat?
NO. SeaTow membership covers towing and soft ungroundings. It does not cover “Salvage” (hard groundings, sinking, fire). You pay out of pocket for salvage and get reimbursed by insurance.
What if I just leave it there?
The state will remove it, fine you 3x the cost, and put a lien on your house/drivers license.