Re: How does insurance work
Back when I had a marine legal practice I did a lot of insurance reviews for pleasure boats. As kd3 mentioned, some were great, some were terrible, but generally it worked like any other insurance. If the insured property is damaged they write you a check, what is considered 'personal' property may vary significantly though.
For example, after Katrina wrecked our Irwin 54' the adjuster considered personal property as anything we could remove from the boat in the 24 hours post inspection.... It's amazing how little time it can take to strip a boat to the glass under those conditions. The only thing left we're the engines, and the trany. Winches, the maxi prop, reader, ect all wound up in my dads garage.