Insurance for your boat: mini-guide for not taking “dudes”

Let’s not beat around the bush: figuring out which boat insurance is best is a big hurdle to overcome. There are so many formulas offered to shipowners, and being able to untangle the policies is likely to become a real chore. We can actually begin to divide marine insurance into two large families: first, the Third Party Liability (TPL), compulsory for everyone (just as is the case with your car); then we go on to talk about so-called policies Yacht Bodies, which can offer coverages and riders at various levels.

GOODBYE TACIT RENEWAL
Please note that insurance companies no longer require policy cancellation, as the tacit renewal clause (i.e., automatic renewal upon expiration) has been abolished: to cancel the insurance contract, simply let the active policy expire. Art. 170-bis of the Private Insurance Code in fact provides for the abolition of tacit renewal clauses in the compulsory third-party liability insurance contract for motor vehicles and watercraft, and any contracts taken out in conjunction with it. In order to renew your policy with the company with which you are currently insured, you must provide your explicit consent: if this does not happen, you can choose to insure with another company without providing any notice or sending notice of cancellation. To change companies, you must present the new one with the risk certificate, a document that contains the policyholder’s insurance history for the past five years. The company is required by law to send the risk certificate to the customer, along with notice of the expiration of the contract at least 30 days in advance: if this is not done, contact your insurance company and ask to receive the certificate. Payment for the new policy must be made by the expiration date of the current one. This way, you will not risk being “uncovered,” and the new contract will automatically activate when your current insurance expires. Pay attention to the effective date of the contract, lest you risk even serious consequences from driving without the legally required insurance coverage.

RC OR YACHT BODIES?
Third Party Liability is the policy required by law. Its premium varies depending on the engine’s fiscal horsepower or kW and the contract ceiling. With this type of insurance policy you are reassured against third parties, but if you really want to sail with peace of mind, you should take out a Yacht Bodies policy (which, in the case of buying a leased boat, is mandatory). The advantage of this type of insurance is that you can “modulate” it according to your needs. We start with the version that includes the basic clauses, including total loss of the yacht, coverage of salvage and total loss expenses. In this regard, care must be taken. The total loss can be of two types: actual, in case of sinking, total theft, disappearance of the boat; constructive, if the repair costs are higher than the insured boat’s commercial value (hence the importance of the accepted appraisal covenant). Partial damage from fire and theft is then added to the basic policy, up to maximum coverage against any event that may occur. Always check that the wreck salvage and rescue costs are included in the policy and calculate the deductible well, which is the amount that remains your responsibility even when you claim damages. A low deductible generally raises the cost of the premium and vice versa.

THE “MUST-HAVE” CLAUSES

We have talked about the importance of paying attention to the clauses of every insurance policy. Let’s look at some of the main ones. First of all the one related to navigation limits: if we set the Mediterranean as our navigation area, we need to know that beyond Gibraltar we will not be covered. If we also want to include other seas and fresh waters, the premium will go up. If we use the boat a few months a year, we can apply for a time limitation in policing by reducing risk and premium. Another clause to keep in mind: insurance coverage during hauling and launching. Often construction sites have their own policies, but if we add our own we will be in a safe haven. Then there is the very important waiver of recourse (in the case of fire only): if the boat catches fire in a marina or boatyard, the insurance company will reimburse the damage by waiving “recourse” on said marina or boatyard. Another option, of key importance often included in the various Bodies, is the so-called accepted estimate: according to this clause, the valuation of the boat indicated in the policy is equivalent to the insurers’ accepted estimate, and therefore corresponds to the amount that will be compensated in case of total loss. Estimation is done according to list prices for new or used boats that are very few years old, while in the case of older boats it usually has to be done by an appraiser, at the insured’s expense. From year to year, then, the estimate must be changed following market values: if we forget to update it (or the broker forgets), we will continue to pay the same amount for the premium even though, in fact, the vessel has depreciated in value. If you like to take part in competitions and regattas, coverage during races is imperative: quite expensive, but helpful in avoiding dozens of disputes.