In the boating context, what is considered complete loss of a vessel?

A complete loss of a vessel is classified as a situation where the vessel has sunk and cannot be recovered. This scenario signifies that the boat is beyond any potential salvage efforts and represents the most definitive loss a vessel can face, as it no longer exists in a usable form on the water. When a boat sinks, especially in a manner that precludes recovery, the loss is final, which is why it is regarded as a complete loss.

In contrast, severely damaged vessels may still hold some potential for repair, thereby not qualifying as a complete loss. A stolen vessel, while certainly concerning for the owner, might still be recoverable through investigation or by law enforcement efforts. Lastly, selling a vessel does not constitute a loss; rather, it is a transfer of ownership. Thus, sinking and being unrecoverable is the clearest indication of a total loss in the boating context.