Boat insurance: getting the most appropriate cover

August 7, 2024

Whether it’s messing about on the river or taking to the high seas, a boat gets you out in the fresh air. It’s also a reminder that we’re a proud maritime nation.

That’s all well and good but if you want to protect your investment, you’ll have boat insurance in mind. What’s the most appropriate cover?

Your boat

The appropriate cover, of course, will depend on the type and value of the boat you own. Your boat insurance will be tailored to whether it’s a yacht or sailboat, a motorboat, or even a narrowboat on the local canal.

Then there’s the question of value. Boat insurance that’s appropriate for a super yacht will be over the top for a small dinghy, for instance. It’s all to do with the value of the vessel because the sum insured needs to meet the cost of its replacement in the event of a total loss.

The insurance package

Unlike motor insurance, in most cases you are not legally obliged to arrange insurance because you own and use a boat. However, boat insurance can offer third-party only or comprehensive cover just like your car insurance. As we’ll see, at least some level of boat insurance cover might be considered essential:

Third-party cover

• just as the name suggests, this provides cover against claims from other people and their property (the third party) caused by your boat;

• third-party liability cover may be considered essential if you own a boat – whether or not you have insurance, you might still be held liable for any damage or physical harm your boat causes others;

• the courts can still order you to pay a considerable amount in compensation – especially if your boat has caused physical injury or even death – and, without insurance, that penalty rests entirely on your own pocket;

Comprehensive insurance

• once again, you’re likely to be familiar with this concept from your motor insurance – comprehensive cover safeguards you against a wide range of risks – such as theft, accidental damage, fire, and sinking;

Equipment and personal belongings

• this is an aspect of cover that you have probably not considered for your motor car but protects against loss or damage to the personal belongings and equipment you carry onboard;

• although some household – or even travel – insurance policies might cover some of your personal items, bear in mind that your boat might have expensive specialist navigational or other equipment onboard and that adequately valued cover may be incorporated into your boat insurance;

Personal Accident

• while boating is as safe as you can make it, there’s no denying that accidents do happen;

• when and if they occur, therefore, you may want the security of knowing that compensation from your insurance is due for injuries sustained by you or others while onboard your boat.

Using your boat

Did you notice that your motor insurance perhaps referred to you using the car only for social, domestic, and pleasure purposes – commercial use therefore excluded?

Similar restrictions may apply to your boat insurance – so, limiting you to purely recreational use and barring any type of use for profit.

The insurance is also likely to restrict your use of the boat to specific areas – such as inland waters only, coastal waters, or international waters.

Exclusions and excess

Just as with practically any kind of general insurance, it’s as important to know what’s excluded as well as included in your cover.

Boat insurance policies vary one from another, of course, but typical exclusions are corrosion, other wear and tear, mechanical breakdown, damage caused if you are under the influence of alcohol or drugs, and commercial use (unless your cover specifically includes such use).

If the worst comes to the worst, you may also expect to pay an excess as the first part of any successful claim on your boat insurance.

Summary

All in all, therefore, you can see that there is quite a lot to consider when thinking about boat insurance. If you’d like any further help, therefore, do not hesitate to contact us on 01702 826060 or email us at enquiries@alanblunden.co.uk.