PleasurecraftThe Family Boat
`Believe me, my young friend, there is nothing – absolute nothing - half so much worth doing as simply messing about in boats. Simply messing,' he went on dreamily: `messing--about--in—boats” Rat – Wind In The Willows
Whether you own a 10' aluminum dinghy for fishing in the local pond, or a 250' mega yacht (yes we insure those too) here are some points to consider.
As in all things, you get what you pay for. Most insurance companies are very much aware of their pricing structure and that of their competitors. If a policy is cheap, there is usually a good reason for it. So, ask us to show you how the policy will react to different kinds of loss scenarios.
Q. What should I look out for?
A. You are at the helm and only you can decide how broad a policy you need. Here are some points to consider in making your 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 worse still cause injury. The industry standard provides a limit of $2,000,000 and should be sufficient to sail in Canada. If you plan to cruise US waters, we urge you to consider higher limits of coverage for that very litigious jurisdiction.
Racing Risks – Powerboat racing is excluded by all boat policies. To get the coverage, it must be purchased separately.
Racing of sailboats on the other hand is not that difficult to insure. Most policies will provide cover for racing as standard, but some insurers may charge you an additional premium. If you race without paying the additional premium you may not be covered. Make certain you tell your broker.
New-For-Old cover - This will replace damaged items with new, but check whether there is 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.
Comprehensive Cover - will provide cover for your boat against accidental damage, including blow out of sails and breaking of spars, grounding damage, theft of the vessel and contents, fire and vandalism.
Q. Do I need to use a specialist marine insurance company?
A. We’d like to think you’d turn to us but, no - many Insurance Brokers will be able to arrange your insurance, but they may not have the necessary expertise to advise you correctly. Our staff has extensive experience in insuring and handling insurance claims on vessels of all sizes including super yachts and even including an America’s Cup 12 meter.
Q. How can I be sure the insurance company I choose is reliable?
A. Claim service is what insurance is all about. The best insurance companies take pride in their claims service – it is what corporate branding is all about. We know the names of the good players and take pains to place our clients with the best of them. We plan for a claim long before it ever happens – that way, there are no surprises.
Q. Why do I need third party cover?
A. Public liability insurance is not required to operate pleasure vessels in Canada but it is wise to do so. Collisions are commonplace among boaters – especially ones that race. Although collision claims are generally small - under $10,000 for the most part, paying this kind of damage out of pocket might be too much for most.
For power vessels, the damage caused to people and property can be enormous and should be insured against. Waterborne collisions that give rise to fatalities are not common but when they occur the financial liabilities can be huge. A policy providing third party liability should cover you if you were to 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, however you must check your policy if you are unsure. It is unlikely that you are covered to sail any boat under this policy and if you are borrowing another boat, you should always check with a boat's owner that you are insured to sail it.
Q. Should I expect a standard policy to cover me while I'm not sailing (ie, when my boat is sitting in the drive or while I'm travelling?)
A. Comprehensive policies should cover your boat against a wide variety of losses whether in use or not; however there may be restrictions on your policy. Boats should be securely tied down. If they are on trailers, the trailer should be immobilized. Outboard motors and outdrive legs should be either removed and kept in safe keeping or configured so that they cannot be removed by thieves. Care should be taken to prevent rats or mice from taking up residence because not all insurance policies will cover this.
Q. Can trolleys or trailers be covered?
A. 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 immobilized and / or locked when not in use.
Q. To what extend would my equipment be covered on a standard policy (i.e. outboard motors, propellers. sails, spars etc)?
A. These items are part of the property insured by a hull & machinery policy or in this case, a pleasurecraft policy. Some insurance companies limit coverage for these kinds of items others, include their value in the total amount insured.
When replacement coverage is offered, it usually only applies to vessels newer than 4 years. And, it requires the boat owner to insure to the cost to replace.
Q. Does it matter who is in charge of my boat?
A. The majority of insurance policies will allow anyone to operate your boat, provided they are qualified and have your permission, however it would be prudent to check this first. If you receive money in return, the boat is being chartered or hired. This may void your policy.
Q. What should I do in the event of a claim?
A. Immediately following an accident or loss, you need to do what is prudent under the circumstances. For example, you make sure crew and passengers are safe and are cared for. You preserve, as best as possible, the boat from further damage. You get it to a safe place where it can be surveyed and repaired. You begin to collect repair quotes. Then, you report the claim to us.
Any incidences of theft or criminal damage should be reported to the police - remember that you'll need the Crime Reference Number for the 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 authorizing its replacement.
If you have any more questions: Call Nikki Keith 604-437-6200
|
