Lightning and Marine Electronics Claims

Claims

Lightning damage to yacht electronics

System	Typical effect	Why it is missed
Masthead instruments	Destroyed outright	Obvious, and usually the only thing reported
Chartplotter and radar	Dead, or failing intermittently afterwards	Intermittent failure looks like an unrelated fault later
VHF and antenna cabling	Front end blown, cable degraded	Radio may still transmit at reduced range
Autopilot and instrument network	Bus damage across multiple nodes	One node fails now, others fail over months
Engine electronics and alternator	Regulator and ECU damage	Only shows under load, days or weeks later
Through-hulls and keel bolts	Pinholing where current exited the hull	Invisible without a haul-out; can sink the boat later
Batteries and charging system	Cells damaged, chargers destroyed	Capacity loss attributed to battery age

Evidence of a lightning strike

Insurers are not sceptical about lightning because it is rare; they are sceptical because failed electronics look identical whether the cause was a strike, a wiring fault, water ingress or simple age. Evidence that a strike occurred at that place and time is what separates a covered sudden event from an excluded gradual failure.

The date, time and position — lightning-detection and Bureau of Meteorology records can corroborate a strike in the area.
Physical signs on the vessel: pitting at the masthead, scorching at the mast step or chainplates, a burnt antenna, melted wiring insulation.
The fact that multiple unrelated systems failed simultaneously, which is the signature of a surge rather than a component failure.
Statements from anyone at the marina or on neighbouring boats who saw or heard it.
A marine electrician's report identifying surge damage rather than age or corrosion.

Lightning cover limits and settlement

Whether electronics sit under the hull sum insured

Fixed electronics are usually insured as part of the vessel. Handheld and portable equipment — a handheld VHF, a tablet running navigation software, a portable radar reflector — often falls under a separate personal-effects limit that is far smaller. Check which of your equipment is which before you assume it is all covered.

New-for-old versus depreciation

Electronics are the category where depreciation is applied most aggressively. A ten-year-old plotter that cannot be replaced with the same model may be settled at depreciated value, leaving a real gap between the settlement and the cost of a working replacement. Some policies apply new-for-old to electronics within a stated age; most do not.

Consequential and progressive damage

Damage that emerges weeks later is where these claims are most often disputed. Notify the insurer that surge damage may be progressive at the time of the original claim, and ask for the file to stay open, rather than discovering a failed autopilot in March and trying to attach it to a January strike.

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.

Read the PDS guide

Preparing an electronics inventory

Photograph and list every piece of electronics with model numbers, and keep the invoices off the boat.
Record a short video of each system working, dated, at the start of the season.
Check that your sum insured actually contemplates the electronics fit, which on a modern cruising boat can be a large share of the value.
Find out what your policy classes as portable, and what limit applies to it.
If the boat lives on a mooring in a storm-prone area, ask what the insurer expects of a lightning-protection arrangement, if anything.

General information onlyThe information on sailboatinsurance.com.au is general educational information only. It may be wrong, incomplete or out of date, and you should not rely on it as a substitute for the current policy documents or professional advice. It does not take into account your objectives, financial situation or needs and is not personal financial product advice. Insurance cover depends on the actual policy wording, Product Disclosure Statement, certificate of insurance, endorsements, exclusions, limits, sub-limits and underwriting decisions that apply to your vessel. Always read the current policy documents before buying, renewing or changing cover. For legal, financial or insurance advice about your own circumstances, consider speaking with an appropriately licensed professional.