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ISO WATERCRAFT POLICY AVAILABLE ENDORSEMENTS AND THEIR USES

(January 2023)

INTRODUCTION

The following identifies endorsements available to modify the Insurance Services Office (ISO) Watercraft Coverage Form. It is arranged by form number and title and includes a brief explanation of the use of each form. This section does not include any state specific endorsements, changes or amendments.

WT 00 01–Watercraft Policy Analysis

ISO Watercraft Coverage Form Endorsements Checklist

Note: ISO makes all of the forms listed below available in both English and Spanish

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

The first two entries are alphabetical characters that indicate the line of insurance involved. In this article, WT denotes Watercraft.
The next two digits designate the specific insurance category such as coverage forms or amendatory endorsements.
The next two digits are the form or endorsement number within the insurance category.
The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this article.

ENDORSEMENTS

WT 03 01–Watercraft Joint Ownership Coverage

This form permits altering the policy definitions of “you” and “your.” The result is that the persons appearing on this form’s schedule are granted named insured status in recognition of jointly owning the covered property.

WT 03 02–Watercraft Additional Insured-Lessor

This is a schedule for adding the party from which some covered property has been leased. Besides full info on the lessor, there are sections for describing the applicable property and coverage and limits information. The form also adds a new definition “your leased watercraft.”

WT 03 03–Watercraft Increased Limits Towing and Assistance Expense Coverage

The unendorsed Watercraft policy provides supplementary coverage for handling expenses connected to wrecked craft. This option adds critical coverage for disabled craft. It provides funds for expenses such as towing to a repair site, cost of fuel and parts deliveries, roadside repair for trailers and repair labor costs. A description of the covered craft and limits must be entered on the forms schedule.

WT 03 04–Watercraft Haul Out Expense Coverage

This option provides coverage to handle haul out expense. In other words, it assists with the expense of taking a covered craft out of (and later, returning into) the water when the NWS (National Weather Service) has issued a hurricane watch or warning. The total amount of coverage available is $500.

WT 04 01–Uninsured Watercraft Coverage

WT 05 01–Personal Watercraft Coverage

The unendorsed Watercraft policy does not cover personal watercraft. That coverage gap is closed by this option.

Related Article: WT 05 01–Personal Watercraft Coverage

WT 05 02–Watercraft Agreed Value Coverage

Watercraft losses are typically settled on the basis of taking age and other factors that diminish value into consideration. In some instances, the features of some property may make this form of valuation impractical. This option allows an insured to, for an additional premium, increase the chance that a loss will be compensated more fairly. In the event of a loss, the insurer becomes obligated to settle according to the lesser of the ACV value or the amount appearing in the form’s schedule. The insurer has some additional protection too. If a repair or replacement results in a betterment to the insured, that additional cost must be borne by the insured.

Example: James and Jenna’s ’63 Clavot Shorelinzer is destroyed in a fire. Its market value as an antique boat in wonderful condition is $39,000, far above its ACV of $14,500. While they won’t be able to recover its full value, they are consoled by their having endorsed a $34,000 limit on their watercraft policy via a WT 05 02 form.