Insurance Question

[BlueYonder]

I was looking at an old policy and noticed that there was a difference in the Latent defect clause. My new policy states:

What we cover:

Hidden Defect: We shall pay for indirect physical loss or property damage caused by any hidden defect in the machinery, the hull, or any other area of your yacht. In the event a mast failure is deemed to be caused by a hidden defect in the mast, the mast shall be considered one indivisible unit. We shall not, however, pay for the cost of replacing or repairing the defective part.

The old policy states:

Exclusions:

Latent defect: However, any resulting direct physical loss or damage to your yacht resulting from the latent defect will be covered.

What is the difference between direct and indirect damage?

 

[David Hughes]

The new policy would be better. Covering indirect events is better for you as that means both direct as well as indirect damage caused by a hidden defect.

 

[BlueYonder]

Thanks. One of the boats on my dock had an impeller come apart and the resulting overheat totaled the motor. He is dealing with his insurance now. This made me wonder if I would be covered under similar circumstances.