Boat and Yacht Insurance

Boat insurance companies provide specialist boat insurance for most types of pleasure craft including yachts, speedboats, dinghies, lasers, sailboards, rowing boats, narrow boats, RIBs (inflatables) and other marine craft. If you are thinking about buying a boat or want to try a different insurer, it is important to note that different insurers offer various types of policy and after sales service.

Boat Insurance - What to Look for?

Everyone's needs are different, and only you can decide if wider cover is important to you. It is essential to understand exactly what is on offer so that you can make an informed decision.

• Third Party Liability - You should not consider going afloat without liability insurance, which will cover you if you cause damage to another boat or cause injury. The industry standard provides a limit of £2,000,000 and should be sufficient in the UK.
• Racing Risks - Most policies will provide cover for racing under sail as standard, but some insurers may charge an additional premium. If you start a race without paying the additional premium, your insurance company would be entitled to reject a claim. If your activities include yacht racing, sand yachting or competitive racing, contact the insurer directly to ensure you are covered.
• New-For-Old cover - This will replace damaged items with new, but there may well be an age limit on your equipment. For instance if you were to break a ten year old mast, some companies would replace this with a new mast of equivalent specification, others would only pay out what they considered to be the mast's value at the time of loss, leaving you to fund the difference.
• Policy Excess - The amount you will be required to pay of any claim made. This is usually negotiable.
• Comprehensive Cover - will provide cover for your boat against accidental damage, theft, fire and vandalism.

Do I need Specialist Marine Insurance?

Many high street insurance brokers will be able to arrange your insurance, but they may not have the necessary expertise to advise you correctly. When making your enquiry on the Internet you will be identifying and dealing direct with a specialist marine company who should have a helpline available in case of difficulty.

Why do I need Third Party Cover?

A £2,000,000 Third Party Liability is usually compulsory if you remain in UK waters and you should not consider sailing without this cover as a minimum. A policy providing third party liability should cover you if you cause damage to property or injury to another person with your boat. Cover is normally provided for a named boat and therefore another person sailing your boat with your permission, would also be covered. Always best to check your policy if you are unsure. It is unlikely that you are covered to sail any boat under your policy and if you are borrowing another boat, you should always check with the boat's owner that you are insured to sail it. Third party risks whilst in transit and under tow would be excluded as this risk is normally covered by a motor insurance policy.

Will a Standard Policy Cover my Boat when it is Sitting in the Drive or in Storage?

Comprehensive policies should cover your boat against accidental damage, theft, fire and vandalism, whether in use or not; however there may be restrictions on your policy. Boats should be securely tied down, trailers locked and/or immobilised when not in use, and equipment stored beneath a cover or taken home after use if possible. It is relatively common for mice, rats or other rodents to make nests in sails if stored in your boat even for short periods of time and not all insurance policies will cover this eventuality.

Would my Trolley and Trailer be Covered?

Most policies can be extended, by payment of an additional premium, to include these items. Claims would be limited to either the market value at the time of loss or the sum specified on the Policy Schedule whichever is the lesser amount. It may be a requirement of the policy that trailers are immobilised and/or securely locked when not in use.

Are my Sails, Spars, Tenders and Other Equipment Covered?

Some insurers will only pay claims based on a percentage of the new replacement cost of your mast, spars or sails, dependant on their age, leaving you to fund the difference. Typically, insurance companies will only pay two thirds of the replacement price on equipment over three years old. Some insurers will pay the full replacement cost of your mast, spars or sails, damaged beyond repair, irrespective of age. All you will need to pay is the policy excess. Tenders to yachts including their outboard motors must be declared separately but are normally included on the main policy.

Does it Matter who is in Charge of my Boat?

The majority of insurance policies will allow anyone to sail your boat with your permission, however it would be prudent to check this first. If you receive payment, for example, the boat is being chartered or hired, this may invalidate your policy.

What is Legal Protection?

On payment of a small additional premium, some insurance policies can be extended to include legal representation if your boat is involved in a collision or other accident and you suffer financial loss or injury. If you are injured, it is obviously important that you have sufficient funds available to seek expert help so that any claim for damages is pursued quickly and effectively.

What about Cover for Sailing Abroad?

This will vary, depending on the policy you have chosen. Always check with your insurance company before taking your boat abroad. You should expect automatic cover for 30 days use in European waters each year. If you intend to sail outside Europe for short periods of time, or your boat will be in European waters in excess of 30 days per annum, then it may be possible to extend the cover accordingly.

What Should I do in the Event of a Claim?

You should always submit your claim as soon as possible after an accident. Any incidences of theft or criminal damage should be reported to the police as you will need the Crime Reference Number to complete a claim form. You will be required to provide at least one estimate for the repairs or a written quote for the replacement items if a repair is not possible. Your Insurer may ask to inspect any equipment damaged, before authorising its replacement.

How Quickly Should I Expect to have my Claim Settled?

This will depend on which insurance company you use and their speed of response. It can also depend how quickly your repairer can provide a quotation and then carry out the necessary repairs. You should expect a response within two working days, advising you how to proceed with your claim.