You own a boat to get away from stress – not to create more. Choosing an insurance policy for your boat can be challenging, particularly if you've never done it before. Steer clear of additional stress with these five things every boat owner neveds to know about boat insurance.
Types of Cover
Don't wait until disaster strikes, make sure your boat is completely covered.
There are two core principles that form the backbone of all marine coverage.
This ensures your legal obligations to third parties are covered in the event of injury, loss of life or property damage occurring due to the usage of your boat.
This covers damage or accidental loss to your boat and its machinery – including the hull, engine sails and any equipment that is necessary to operate your boat.
Is your boat still covered when it is out of the water?
Value versus money
When looking at different policies, be sure to check whether your physical damage cover falls under agreed value or actual cash value.
This means you will be paid the amount stipulated on the policy in the event your boat is considered a total loss. An amount is agreed upon by the insurer and insured upfront.
Actual cash value
This option doesn't provide as much coverage but the premiums are usually lower. Rather, you will get back enough to replace your boat's market value at the time of the claim. The depreciation, current market value and condition of your boat will all be taken into account when deciding how much you will receive.
Trailer and transport coverage
Interestingly enough, when your boat is out of the water and on a trailer, it is still covered. It isn't covered if your boat is being towed on a trailer, and the trailer causes damages to third party property. This would not be covered by your boat insurance but would need to be included under your motor policy.
However, when the trailer is not being towed and either on the dam bank or boat club slipway whilst you are using the boat, there is cover for physical loss of or damage too but no liability arising therefrom.
Most policies have territorial limitations. For example, at Compendium, we offer coverage that applies to any body of water within Southern Africa, and extends as far as 12 nautical miles from the coast of South Africa, Namibia and Mozambique. Ensure you check that your policy covers you in the locations you wish to visit. Certain policies may even exclude certain high-risk areas.
How much are you rally covered for?
A good policy will include coverage for the following liabilities:
- Medical payments: This covers your first aid, ambulance and hospital costs in the event of an accident. Passengers who were also injured will be covered too.
- Towing and assistance: This will ensure the cost of boat towing, emergency repairs, fuel delivery while at sea, and any other emergency assistance is covered.
- Personal property: This covers the loss of any personal items such as clothes, gear and more.
- Third party liability: This cover is not obligatory, but it covers you and your passengers in the event of injury caused by another boat owner who has no liability cover.
What do we cover?
We offer highly flexible cover for a wide range of vessels, including boats, dinghies, yachts, cats, and jet skis. Boating equipment and boating accessories also fall under the cover of this policy. However, should you require more specialised cover, we do offer policy extensions.
For more information on our policies, please contact one of our brokers today.