No more policy-scam! Everything you need to know about insurance

The boat is, by law, part of the category of vehicles, and in particular of surface vessel transportation, and for this very reason it is mandatory that it be insured. In short, it is essential to know that after buying a boat, the first thing to do is to have an insurance contract that protects yourself and others. But how and, more importantly, under what policy? First of all, and this is the real obligation, you must take out an insurance contract that covers Third Party Liability (so-called liability). In boating as in cars, this is the policy to take out for every type of boat. The liability premium varies depending on the engine’s fiscal horsepower (or Kw, to be calculated according to engine capacity) and the contracted maximum. It should also be mentioned that by law the engines are considered immovable, so there will be only one RC to be paid for any two thrusters, taking into account the sum of their powers. Then there is a second type of marine insurance, however optional: these are the Yacht Body policies, which offer coverages and riders at various levels, up to and including protecting the boat against all kinds of damage. They are similar to car kasko and become of mandatory stipulation when a boat has been purchased with a lease or subsidized financing. How then to choose one’s Body policy?

It is a matter of cost, as well as hypothetical risk: in fact, by taking out liability only, the premium to be paid hardly exceeds 300 euros, varying according to the fiscal horsepower of the inboard, outboard, and inboard-outboard engine and the maximum limit established by the contract (the minimum, by law, is 2.5 million euros for personal injury and half a million for property damage). On the other hand, those who are less confident or prefer to sail carefree, or are still novices, are better off choosing from Yacht Body policies. In Italy they are modular: starting with “C,” or Minima, which includes the basic clauses, including total loss of the yacht, coverage of salvage costs, wreck removal costs and abandonment; “B,” or Reduced, adds partial damage from fire and theft to the Minima; “A,” or Maximum, to “C” and “B” combines partial damage caused by any event. Costs in these cases are heterogeneous, determined by the age and length of the boat, maximum speed, insured value, clauses and quality of the company. Another influencing factor is the value of the deductible, which is that amount of money that, even if a claim is made, must be paid by the insured. If it is low, it raises the premium cost and vice versa: therefore, before making a policy with a very low premium, check the “deductible” item well.

WHO TO RELY ON?
Those who like to do-it-yourself can approach the companies themselves, trying to figure out the right policy for their boat. Perhaps after doing the work of researching and comparing the various offerings online (as we did to create the table below). Alternatively, one can contact a broker, who is better plugged into the world of companies and therefore has the ability to deal with different types of contracts. In either case, it is important to know what characteristics distinguish a good broker and a good company.

In the first case, it must be said that a broker’s skill is measured in his or her ability to be able to tailor a policy to the insured, inserting certain clauses into the contract, and eliminating others. If you have a “special” boat (prototypes, monotypes, and so on), the agent’s work is more important than in the case of a production boat, since the “customization” of the policy is a determining factor. Another important criterion is in the handling of the claim: the good broker follows the entire process by providing constant advice. Claim handling itself is also the key to drawing a clear line between good and bad companies. In fact, it is the precision in following up the file and the speed in settling the claim that make people prefer one company over another. And to know what eventual wait you are going to face, you must always read carefully all the lines of the proposed contract.

THE GOOD POLICY
In general, there are ten clauses that a good policy should contain. The first relates to navigation limits: if you set the Mediterranean as an area, you have to keep in mind that beyond Gibraltar you are not covered. And by including other seas and fresh waters, the premium goes up. Those who use the boat only a few months a year can apply for a time limitation, reducing risk and premium. Another clause: insurance coverage during hauling and launching. Construction sites often have their own policies, but you never know. Then there is the waiver of recourse (in the case of fire): if the boat catches fire in a marina or boatyard, the insurance company will reimburse the damage by waiving “recourse” on the said marina or boatyard. This is a clause required by shipyards with valuable boats. Another key option of the Bodies, is the accepted estimate: it stipulates that the valuation of the boat in the policy is equivalent to the company’s accepted estimate, and thus corresponds to the amount compensated in case of total loss. Estimation is done according to list prices for new or used boats a few years old, but in the case of older models it must be done by an appraiser, at the insured’s expense.

From year to year, then, the estimate must be changed following market values: if you do not update it, you continue to pay the same amount for the premium even though the boat has depreciated in value. Still important is the coverage of salvage and wreck removal expenses, and, why not, replacement to new: with this option, if damaged parts or accessories are replaced, they will be compensated at the purchase price, without the application of degradation of use. Useful option is the one on damage to the motor apparatus. Anyone who has a boat knows that the primary source of breakdowns comes from the engine compartment. Those who take part in competitions, choose coverage at the competition stage: it is expensive, but helpful in avoiding thousands of disputes. Sometimes, then, the bilge pumps go haywire: the clause against flooding and inundation must be chosen. Last option is coverage in unprotected waters. Essential for those who often stay in the roadstead and, disembarking for a dinner party and leaving the boat unattended, do not want to risk a crook attempting to take possession of the boat with the classic “I found it drifting, now it’s mine” excuse.