Cover
Hull cover and third-party liability
A pleasure craft policy commonly combines cover for physical loss or damage to the insured boat with third-party liability. The policy may also include or offer cover for tenders, outboards, trailers, emergency towing, salvage, wreck removal, personal effects, watersports equipment, racing or personal accident benefits.
Comprehensive policy definitions
Two products both described as comprehensive can have different exclusions, navigation limits, storm requirements and valuation methods. The label is only a starting point. The policy wording controls the actual cover.
Sum insured and settlement limits
The sum insured is usually the maximum amount used for specified property cover, subject to the policy terms. It should reflect the valuation basis used by that policy. A total loss settlement can differ depending on whether the policy uses agreed value, market value or another basis.
Boat insurance excesses
The excess is the amount the policyholder contributes to an accepted claim when the policy says an excess applies. More than one excess can sometimes apply to the same event. Check storm, theft, racing, young operator, named cyclone or other additional excesses.
Policy exclusions
Common marine insurance issues include wear and tear, corrosion, gradual deterioration, osmosis, defective maintenance, mechanical breakdown, pre-existing damage, unapproved commercial use, navigation outside the insured area and failure to meet storage or security conditions. The exact wording varies.
Claim evidence and policy documents
Photos, maintenance records, invoices, survey reports, weather information, police reports and repair quotations can all become relevant. Notify the insurer promptly after a significant incident and follow any emergency steps required by the policy.
From a boat insurance quote to a claim
A quote uses information about the vessel, operators, storage and intended use. The insurer may request a survey or attach conditions. Before cover begins, confirm the insured names, vessel description, value, navigation area and start time in the documents you receive.
After an incident, contact the insurer and keep photographs, receipts and records of the cause and damage. The claim is assessed against the insured events, exclusions, conditions, limits and settlement terms. The premium is the price of the contract; it is not a guarantee that every boating loss will be paid.
Use the policy comparison checklist to record the terms, then prepare consistent vessel details with the interactive quote checklist.
Related guides
- Comprehensive Boat Insurance Australia
- Third Party Boat Insurance Australia
- Hull Insurance for Yachts and Boats
- Boat Liability Insurance Australia
- How to Make a Boat Insurance Claim
- Boat Insurance Cover Types