Final answer:
Most boat owners policies typically offer physical damage coverage on an open peril basis, meaning all risks not explicitly excluded are covered. This is broader than a named peril policy, which limits coverage to specific risks named in the policy.
Step-by-step explanation:
It is generally true that most boat owners policies provide physical damage coverage on an open peril basis. Physical damage coverage on an open peril basis means that the policy protects against all risks of loss that are not specifically excluded in the policy. This is more comprehensive than a named peril policy, which only provides coverage for the perils specifically mentioned.
Therefore, with an open peril or all risk policy, unless the peril is explicitly excluded, the boat owner can have confidence that the physical damages to their boat will likely be covered. Typical exclusions might include wear and tear, gradual degradation, or damages caused by marine life. Determining the exact coverage is essential, and it is always advised to review the specifics of the policy to understand the covered perils and exclusions fully.