Claims
Causes of sinking and flooding
| Cause | How it is usually treated |
|---|---|
| Hose failure or clamp corrosion | Resulting damage often covered; the failed part usually not |
| Seacock or through-hull failure | Turns on whether deterioration was the underlying cause |
| Stern gland or shaft seal | Frequently argued as wear rather than sudden damage |
| Saildrive seal failure | A recurring multihull and saildrive issue; check the wording |
| Rainwater and blocked drains | Often excluded as a maintenance failure |
| Swamping in a following sea | Generally a sudden accidental event |
| Collision or grounding | Covered as the underlying insured event |
Preserving evidence after sinking
Notifying the insurer and arranging recovery
- Deal with safety and pollution first — fuel and oil containment matters legally and to the claim.
- Notify the insurer immediately; most policies require prompt notice and many appoint a salvor.
- Do not authorise salvage beyond emergency measures without talking to the insurer.
- Photograph everything before the boat is moved, lifted or cleaned.
- Preserve failed components, and note where each came from.
- Record the weather, tide and who was aboard or nearby.
Survey evidence of the cause
After a sinking the insurer appoints a surveyor whose job is to determine cause. Their finding is usually what the claim turns on. Engaging constructively — providing maintenance records, service invoices and the failed parts — is the most useful thing an owner can do at that stage.
Engine and electrical damage after immersion
A submerged engine can often be saved if it is flushed and preserved quickly, and ruined if it is not. Salt water in electrical systems causes progressive corrosion that appears weeks later. Raise both with the insurer early, because delay converts a repairable loss into a total one.
Read the wording before you need it
Almost every disputed marine claim turns on a definition, an exclusion or a condition the owner had never read. The PDS guide explains which sections decide claims.
Frequently asked questions
Is sinking covered by boat insurance in Australia?
Sinking from a sudden accidental cause is normally an insured event. Sinking traced to corrosion, wear or a maintenance failure is commonly excluded, so the cause finding decides the claim.
Is the failed hose or seacock itself paid for?
Usually not. Many policies pay for the resulting damage but exclude the worn part that caused it. The distinction is in the wording and is worth reading before you need it.
Related guides
- How to Make a Boat Insurance Claim
- Water Ingress and Leak Insurance Claims
- Boat Insurance Exclusions Explained
- Salvage and Wreck Removal Insurance
- Osmosis, Corrosion and Boat Insurance
- Engine and Machinery Insurance Claims Australia
- Boat Insurance Claims Australia: Incidents and Disputes