Making boat insurance plain sailing

Transcription

1 Making boat insurance plain sailing

2 When buying a boat there are many things to organise, often in very little time. This guide gives first-time boat owners advice about boat insurance requirements in the UK, and even if you re an experienced boat owner you may pick up some helpful tips. We want to help you arrange this essential protection for your boat with the minimum of hassle..

3 Do I need insurance? Insurance is not actually a legal requirement in the UK, but if you are considering investing thousands of pounds in a boat it s wise to protect it. There are also many circumstances in which you ll need evidence of insurance for example, for marine finance, if you want to race or charter, or if you keep your boat in a marina, harbour or regulated lake. Remember you can start your policy from the moment you have a financial interest in the boat, even if owners policies overlap. If the boat is being refitted or transported you may well wish to take out cover to protect you in case any insurance, or haulier s limits of cover are inadequate. You ll also need insurance if you want to be granted an inland waterways boat licence. For those travelling further afield most European countries will require you to produce translated insurance certificates. Given the many situations in which insurance is now required, the cost of repairing any boats you may damage, and today s litigious society, we strongly recommend insuring your boat.

4 How much does it cost? Where can I get boat insurance? Factors that affect your premium include the value, size, type and age of boat, and where you keep and use it. It s generally very easy to get a no obligation insurance quote to help you budget before you take the plunge and buy your new boat. You may be able to pay the premium by direct debit, which will spread the cost and reduce the risk of your policy lapsing unintentionally. This facility might incur a service fee. There are many different ways to obtain a quote and arrange cover, with the most popular being via an insurance broker. Brokers can access many markets, so it is important you are comfortable with the company they select for you. Alternatively, you can deal with the insurer directly. This may save time but if your insurance needs are complex, you may wish to take advantage of the experience and knowledge of a professional intermediary. You can find details of specialist boat insurance brokers in the classified section of boating magazines, via the internet or trade directories.

5 If you are buying your boat through a dealer or dealership they may be able to give you details of companies to contact, but they cannot recommend, advise or obtain quotes for you due to insurance regulations. Most should be able to point you in the direction of a website that you can visit for an independent quotation. You can of course ask the opinion of another boat owner with many years experience of boat insurance. Whether this is the person you re buying your boat from or a neighbouring boat owner, their opinion and recommendation is certainly worth bearing in mind. Remember that brokers and insurers can be closed at weekends, so if you re planning to buy at this time you may need to delay the transfer of the boat title (deed) until you are able to arrange a quotation and have cover in place. Alternatively visit for 24 hour online quotes and cover. Visit for online quotes and cover

6 What information do I need to get a quote? Unfortunately boat insurance isn t as straightforward as home or car insurance. As there is no MOT-type system available insurers will need quite a bit of information to verify a boat s condition. Details commonly requested include: boat type boat age boat size construction material where you will keep your boat cruising limits uses of the boat (cruise, race or charter). If your boat is a motorboat the insurer will also want to know: fuel type horsepower speed. The insurer will also want your own details including claims history and boating experience. Insurers will typically cover the boat for its current market value, normally the purchase price. If you vary this by more than 10% Navigators and General, for example, will ask for an independent valuation. Likewise if you are unsure of the age or type of boat, or it is over 20 years old, expect to be asked to produce a full out of water survey report by Yacht Designers & Surveyors Association (YDSA), Royal Institute of Naval Architects (RINA) or International Institute of Marine Surveyors (IIMS) certified surveyor before you are granted cover. Please make sure that any declarations you make are correct, as this will be the basis of a legally binding contract between you and your insurer. Deliberately withholding or misrepresenting information may invalidate your policy.

7 What should I be looking for? Open the back of a magazine, or surf the web and you will find a whole range of companies offering boat insurance. Picking the best company for you in terms of security, expertise and claims service is time well spent when you really need assistance or have to make a claim it will make all the difference. Like most things in life you get what you pay for and your insurer s security and ability to settle claims is fundamental. Make sure that you are insured with a well-established company (even if via a broker). The size and length of time established is also a good indicator of the company s expertise in this specialist field. If the company is actively involved in boating events themselves, or are member of the British Marine Federation, you are likely to find that they will understand your needs and problems better. When you get your policy do take the time to scan through it. Use a highlighter pen to highlight any warranties, conditions or exclusions and make sure you study and understand them. Failing to do this could mean you unwittingly invalidate your policy. If you need clarification, call your insurer or broker and ask them. Visit for online quotes and cover

8 What is covered and what is excluded? Boat insurance isn t quite the same as home or motor insurance, both in terms of what is covered and the types of policy. You can have an All risks wording, which is similar to comprehensive motor cover, or cover for specific perils only. A few companies offer third party only and it may not even be possible to take out third party fire and theft cover. The most basic element of cover that you should have is liability protection against third parties or passengers claiming for damage to them or their property arising out of your negligence. Our standard level of liability protection is 3,000,000. The other main section to the policy is material damage to your boat and her gear and equipment.

9 We ve listed opposite the marine perils that boat insurance policies typically cover, as well as standard exclusions. There are of course many variations but this will give you a general idea of the scope of these policies. The Summary of Cover that accompany policies will summarise the main covers and exclusions. The total amount that you insure your boat for should represent the market value of the vessel, her equipment, (that would normally be sold with the vessel) and your personal effects (that you would keep if sold). Policies are normally agreed value, which means that the value that insurers agree to insure would be the amount that you would expect to receive if the vessel is a total loss, so it s important to list everything. A guide to cover and exclusions Boat insurance policies generally include: fire/explosion theft/attempted theft vandalism/piracy storm latent defects in equipment your negligence contact with third party objects frost damage. They don t usually include: wear and tear gradual breakdown corrosion or electrolysis deliberate acts of negligence or recklessness under the influence of alcohol or drugs cover for racing. Breaches of policy warranties and conditions are also likely to invalidate claims. Visit for online quotes and cover

10 Handy tips and things to watch out for Don t forget that you can get a discount on your premium through no-claims bonuses on other boat policies, and a higher excess can also help reduce a premium. A protected no-claims bonus is often available if you ask for it. A marina berth will typically get you a lower premium because of the improved shelter/security. If you have an agreed value policy, don t forget to review your boat s market value from time to time and inform your insurer if it is significantly over or under insured. If you can speak to a regular contact at your insurers do so it will help their understanding of your requirements, and make it easier for all. Legal cover can prove invaluable if you need to claim against a third party for uninsured losses. Ensure your personal effects are specified and that the sum insured amount is adequate. Navigators and General automatically cover Personal Effects up to 2% of the sum insured maximum 2,500. Advise well in advance of any extended cruising plans, or changes in use. It may take time to produce your required paperwork, and you may even need to change companies if they can t accommodate your requirements. If you have a claim outside office hours, the best advice is to act as though uninsured. Insurers should reimburse reasonable costs incurred in minimising further losses. Remember never to admit liability and take immediate details of witnesses and photos if any third parties are involved.

11 The UK s no.1 for boat insurance At Navigators and General we ve been insuring pleasurecraft since 1921 and are the UK s no.1 boat insurer. We provide insurance for all types of leisure craft, from small dinghies up to 10 million luxury yachts. Our specialist knowledge and personal service makes it simple to get the cover you need, whatever type of craft you have. You can be confident that you are safe in the hands of an insurer that is part of Zurich Insurance Group. Visit us at for online quotes and cover For more information, advice or a no-obligation quote please: call us on or [email protected] Useful organisations FCA Financial Conduct Authority BMF British Marine Federation RYA Royal Yachting Association YDSA Yacht Designers & Surveyors Association RINA Royal Institution of Naval Architects IIMS International Institute of Marine Surveyors

12 NG ( ) (03/14) RRD Navigators and General is a trading name of Zurich Insurance plc. A public limited company incorporated in Ireland. Registration No Registered Office: Zurich House, Ballsbridge Park, Dublin 4, Ireland. UK Branch registered in England and Wales Registration No. BR7985. UK Branch Head Office: The Zurich Centre, 3000 Parkway, Whiteley, Fareham, Hampshire PO15 7JZ. Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. These details can be checked on the FCA s Financial Services Register via their website or by contacting them on Our FCA Firm Reference Number is Communications may be monitored or recorded to improve our service and for security and regulatory purposes. Copyright Zurich Insurance plc All rights reserved. Reproduction, adaptation or translation without prior written permission is prohibited except as allowed under copyright laws. The pulp used in the manufacture of this paper is from renewable timber produced on a fully sustainable basis. The pulp used in the manufacture of this paper is bleached without the use of chlorine gas (ECF Elemental Chlorine Free). The paper is suitable for recycling.