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Boat insurance
is essential both to protect you, as owner of the craft, and
your potential liability
to third parties. Mr DS Kirkham, retired from Eagle Star, has
kindly written the following brief
guidance notes for assistance to boat owners.
- Reputable
Companies. It is important to ensure that insurance is
with a Company which will provide a prompt and efficient service.
- Extent
of Cover. Third Party cover protects an owner in respect
of claims for damage which he may cause to other boats or
injuries to other people, but it does not meet the cost of
damage to one's own boat. Cover on full terms (comprehensive
cover) includes the cost of repair or loss of the boat insured.
Marine cover is normally arranged on an 'agreed value' basis
rather than market value at the time of loss.
- Agreed
Value.
The value for insurance purposes need not be the original
acquisition cost of the boat. It does depend upon individual
circumstances which vary from craft to craft and you should
consult your insurer particularly when the craft is used for
racing. One-design craft (e.g. White Boats, Yeoman) are relatively
easy to value but one-off cruisers, whether sail or power,
may be more difficult, particularly if they have been owned
for some time. Consult your insurer for guidance.
- Racing
Risks Extension Clause.
As boats racing are liable to be pushed harder than when cruising,
insurers will only meet damage to the mast, spars, sails and
running rigging, where a Racing Risks Extension Clause is
included within the policy; cover under this clause will provide
for reimbursement up to two-thirds of the total cost of the
loss. It is essential that the true replacement cost of these
items is stated and agreed at the outset as otherwise the
settlement figure will be proportionately further reduced.
- Third
Party Indemnity. Insurers normally recommend that this
is not less than £2,000,000, bearing in mind that this
may involve injury to third parties as well as damage to third
party property.
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