Two examples to highlight the importance:
Despite your caution and good seamanship, suddenly there is not enough water under the keel - you run aground and can refloat your yacht by yourself. A salvage operation is performed, the boat is lifted out of the water and transported to a boatyard. The complete costs including salvage, cranes and transport is covered by your Yacht Hull Insurance. You only have to pay the agreed deductible. If you have not made any claims for at least five years, we will not change your no-claims bonus (bonus saver).
A loss assessor subsequently determines that a nearly new tunbuckle has snapped - clearly a material defect! The hull insurance covers all the damage including the costs of the loss assessor. The cost of the turnbuckle is not covered - because material defects are not covered by the terms and conditions - unlike the resulting damage!