Mortgagee Interest
Nowadays, it is quite common that when you buy a boat or take out a mortgage, you have to deal with a credit institution that wants to protect your investment. A lender (bank or other financial institution) named as a beneficiary or co-insured on the Hull & Machinery policy can also protect its financing by taking out an additional Mortgagee Interest insurance policy.
This protection applies if the insurer refuses to pay compensation to the owner of the vessel Hull & Machinery, either because of the owner’s negligence or because of a breach of the terms of the insurance contract. Such a situation may arise, for example, if a vessel breaches the navigation restrictions laid down in the insurance contract or if the owner of the vessel fails to pay the premium on time. Usually, the sum insured is the loan amount, which may not exceed the insurable value of the vessel.