FACING FACTS

As experts across the marine insurance landscape, Pantaenius UK have been helping leisure boaters protect their floating assets for over 30 years. There are a number of decisions newcomers to boating need to make when starting out and insurance is usually high on the list.

It is important to choose the most appropriate, inclusive and cost effective cover for you and your craft without getting too lost in the small print and remembering not all policies are the same. Boat insurance is all about protecting yourself against the unexpected and good cover will come into its own if you ever need to make a claim. People often ask why boat insurance is necessary; a reasonable question as there is no legal requirement to take out boat insurance in the UK. However, to be a responsible boat owner, whilst safeguarding your interests, appropriate cover should really be considered a must-have. Primarily it is vital to protect your investment against any loss and/ or damage, which could result in a very costly repair bill should the unforeseen occur. Secondly, boat insurance will help to protect you against any third party liability sustained for injury or damage caused by you or your boat.

A number of factors can have an influence on the premium that is payable and there will be differing levels of risk attached to different types of boats. For example, a small sailing dinghy compared to a fast power yacht will have different considerations. Similar to car insurance, boats fall into categories according to their type and value for risk assessment. Insurance has to factor in the type and size of the vessel, any potential repair bills that could result, how easily it could be stolen and the potential for damage to occur, all prior to calculating the premium.

Premiums are also influenced by where the boat is generally kept and its use, as well as the overall experience of the boat owner/user together with the type of use envisaged e.g. racing, fishing, cruising and so on.

Do be aware that different cruising grounds can carry different risks and remote areas will make repair or recovery facilities more difficult, which would in turn be reflected in the premium. At the time of applying for cover, owners need to let the provider know the intended cruising area for the year ahead (to be updated if this changes). It is also recommended that if longer term plans include more adventurous plans or racing, this should be discussed.

Additionally, any previous claims are taken into consideration in the final calculations.

When taking out a boat insurance policy there are many features to look out for. Firstly, make sure your insurer is authorised and approved by the country’s regulatory body, which in the UK is the Financial Conduct Authority.

Clearly the level of premium is vital, but this should not be the main decider, it is important to gain a balance between cost and benefits. All policies are different; always read through the wording carefully to check for any exclusions and make sure your policy fits your requirements and the cover you want.

A useful tip is to assess the most expensive aspects of your boat and look at what cover the policy provides for these being damaged or stolen. Also see if any deductions would apply if a claim is made, for instance if any replacement is on a new-for-old basis or if reductions for wear and tear apply.

The purpose of insurance is to put you back in the same position as before the event, however if brand new parts are needed there may be a contribution required towards this improvement.

A standard boat insurance hull policy will cover any physical damage to the vessel, usually including equipment such as hull, sails, machinery, furnishings, onboard equipment and, if applicable, your trailer. Typically included should be the following:

■ ‘All Risks’ cover including fire, theft and malicious damage, sinking, stranding, collisions and salvage costs.

■ An agreed fixed value hull policy is preferable and will involve a fixed sum insured that cannot be challenged in the event of a total loss claim.

■ Damage or mechanical breakdown of engines and machinery is often only covered by higher quality policies, as is misfuelling cover.

■ Loss or damage caused by undiscovered (latent) defects.

■ Third party liability cover if the policyholder is using a borrowed or chartered boat.

■ Cover for emergency assistance and towage.

■ 12 months in-commission cover - with no enforced lay up period or added cost for year round use.

■ A 24/7 emergency claims helpline.

As with any type of insurance policy there will be exclusions and these generally include loss caused by wear and tear, progressive deterioration from faulty parts or lack of maintenance, weathering and damage due to animals, insects, mould and so on. Another factor to take into account can also be any unforeseen manufacturer’s defects. Always consider replacing/repairing something that you believe has a risk of failure due to its age or condition.

Boat owners often wonder if a homeowner’s insurance policy provides cover, which it may to a certain extent (personal possessions for example), but these types of insurers do not have particular expertise with watercraft. Although limited cover may be available, it will not be tailored to your needs so there are lots of good reasons to invest in a dedicated boat policy and have complete peace of mind.

Before buying any boat, old or new, all owners should ideally discuss the type of insurance cover they will need with a specialist broker. Surveys may sometimes be required as a part of boat insurance. Insuring older boats can sometimes be more complex. If the boat is 20 years or older it is quite normal for a condition survey to be carried out approximately every five to seven years to check it is in good working order, but this does depend on your insurance provider.

In terms of what claims are most prevalent, certainly collision and weather are the main claims that the team deal with at Pantaenius UK. Lightning and grounding also feature very heavily with theft and vandalism next.

Rig/mast damage is common and is often avoidable with better maintenance. Fire, whilst thankfully a little less common, can be tremendously destructive often leading to total loss.

To gauge insurance, you only really test it when you claim. Luckily the majority of insurers will settle valid claims without any dispute, but it would hardly be surprising that those paying less for their cover may experience less generous claims handling.

Sailing is not a 9-5 pastime and, should an emergency occur, you will want to have 24/7 support on hand to ensure immediate and relevant advice day or night. Whilst most insurance providers offer this assistance, it is not always provided in-house or on a 24/7 basis.

It is also worth checking whether the claims management can access the right support internationally. Pantaenius, for example, has over 35,000 trusted ‘partners’ around the world, meaning they can provide the best support, no matter where you are cruising. Choosing an insurance provider with a superb reputation for claims is clearly a very important consideration.

www.pantaenius.co.uk