Increased Value
Increased Value Insurance (also known as Freight Interest Insurance or Increased Value Insurance) provides additional coverage, allowing the insured to secure an extra 20% on top of the vessel’s insured value in the event of a total loss.
A total loss may leave the shipowner in a situation where the standard Hull & Machinery (H&M) insurance payout is insufficient to cover all costs associated with replacing the vessel. Increased Value Insurance enables the shipowner to replace the lost vessel and put a new one into operation. This type of insurance also protects the shipowner against potential loss of income (freight), as Loss of Hire insurance does not apply in cases of total loss.