More recently, war risks have been removed from ordinary marine policies and are covered by separate war risk policies. Not covered are ordinary wear and tear and losses which can be anticipated as regular incidents of sea carriage or navigation. Hull policies, that is policies insuring ships, used to be quite specific as the risks they covered. Modern policies are written to cover most forms of liability. Under a marine policy a loss can be partial or total.
Total losses can be actual or constructive.
Actual total loss can be defined as the situation in which a ship or its goods can no longer arrive at their destination in specie . Actual total loss can also be found where the goods are so damaged in the course of the voyage that, while they still exist in specie at that time and can be sold where they are, there is no reasonable possibility that they can be transported to their destination without complete destruction or change. Constructive total loss is distinguished from actual total loss in that no formal abandonment need be made in respect of the actual total loss whereas the tender of abandonment is a prerequisite of a claim under constructive loss. It should be noted that, in the pleasure boating industry, boats can be insured either under a yacht policy or a boat policy. A boat policy, much like insurance policies in motor vehicles, does not set an agreed value and in the event of loss depreciation is usually deducted from the amount the insured will recover.