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 covering risks from fire, falling over, etc., while the craft is out of commission.

A yacht should be insured for her full value. If insured for less the ratio which that amount bears to the true value will be deducted from the amount given as compensation for damages. Here is an English case in point. A man insured a boat for £200, her true value, as declared by him to Lloyd's agent at the time, being £250. She suffered damages in a blow. The owner agreed to accept £25 for compensation. He was tendered £20, the explanation being that he had undertaken a fifth part of the risk on the craft himself, inasmuch as he had insured the boat for £50 less than her real value; also that as he had agreed upon £25 as compensation for the damage sustained, the underwriters could only be called upon to pay £20. An appeal to the courts resulted in a judgment for the underwriters.

It may be mentioned that English companies do the bulk of marine insurance, and that the law with regard to it is practically the same in the British Islands and this country.

After mentioning all the dangers that may cause total loss, which is fully insured against, the policy states that where only partial damage is sustained the underwriters will pay an average for the repair of such damage at the rate of 3 per cent.