Owning a private boat is something many Australians take pride in, with more than 90 per cent of the population living within 100km of the ocean. However, these vessels are often expensive and an extremely valuable asset, requiring a comprehensive insurance policy for protection.
Protecting both the vessel and the potential liability claims that others can make is essential and just like business insurance, a vessel owner needs to consider covering for an appropriate level of cover.
What should a policy include?
It’s important to look beyond the basic hull and to list the extra items that need to be covered. In many cases, accessories and attachments can be costly to replace. An insurer doesn’t know what you don’t tell them and although some insurers have an automatic allowance for non standard accessories, its a good habit to provide a them with a full list and replacement values.
Here are several areas that need to be considered.
- External motors;
- Sails, spars, masts, running rigging;
- Boat accessories;
- Safety equipment.
Understanding third-party property cover
While a boat policy may seem simple at first, it’s actually comprehensive and needs to be well understood. Like cars, there’s also a third-party consideration that needs to be made.
This insures both the owner and any operator allowed by that person to control the boat against liability claims for incidents such as accidental death or bodily injury to others.
Accidental damage to other property is also included. Option covers can be extended where required, to cover aqua planers or skiers being towed by a boat, though these are optional.
Before taking out a vessel policy, it’s important to identify to your insurance broker whether the boat will be involved in racing or operating more than 100 nautical miles from mainland Australia.
Speak to MGA Insurance Brokers today if you’d like more detailed information about insuring such a valuable asset. Failure to take out an adequate insurance policy could lead to severe financial damage.