(KnowRisk)
Pleasure Crafts (boats)
Pleasure craft insurance is designed to protect private boat owners from loss or damage to their vessel and accessories as well as any legal liability arising out of the use of the vessel.
Like private motor vehicle insurance, there is usually a no claims bonus system and this can result in a cheaper cost if no claims are made.
Policies differ slightly among insurers, but the basic tenets are common to most insurers in Australia and New Zealand.
A typical pleasure craft owner’s policy protects the insured and anyone using the pleasure craft with the insured’s permission. The definition of BOAT usually includes:
- the hull
- motors – including control equipment
- sails, masts, spars and rigging
- auxiliary dinghy (if any), accessories and trailer
- The craft is insured for market or agreed value, and is usually accompanied by an excess. The excess is payable only when the policy holder is at fault.
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WILL PAY/FULL COVER |
WON’T PAY/NO COVER |
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Voluntary rescue work |
Extra costs- i.e. hiring replacement craft |
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Towing damaged craft to safety |
Reduction in value- because of age or damage |
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Personal property on craft if lost or damaged |
Cost of worn-out parts |
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Inspection of hull if stranded |
Rust or corrosion |
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Recovering boat, reducing loss costs |
Faulty workmanship, structural defects, design |
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Dismantle, clean craft if submerged |
Mechanical or electrical breakdown |
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Pre-existing damage (prior to insurance) |
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Damage to tyres of trailer |
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Skiing or diving equipment, |
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Fishing equipment not permanently attached to craft, |
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Unsecured sails, protective covers, outboard motors |
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Overheated motors |
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Damage to sails, masts, riggings as a result of racing. |
For sailing boats, a racing risk extension is available (for races that are less than 50 nautical miles).
When filing a claim, an insured must fulfil various contractual obligations including to:
- Make a claim as soon as possible after a loss. Failure to do this may result in reduction of claim resulting in disadvantage to the insured
- Take all reasonable steps to stop any further loss
- Advise the nearest police station if boat is lost, stolen, vandalised or maliciously damaged
- Keep the damaged property so that the insurer may inspect it
- Advise the insurer of any prosecution or inquest that may be held
- Send any document relating to a claim to the insurer as soon as possible (alternatively for some insurers within 72 hours) of receiving the document
- Not repair or replace damaged property without the consent of the insurer
- Not pay, promise to pay or offer payment, or admit responsibility for a claim
Caravans
If you’re taking the opportunity to travel more, or just enjoying your boat, caravan or motor home on the weekends, there are insurance products to help make sure you’re always protected.
Whether you keep it permanently onsite, or take it across the country, caravan insurance policy provides protection against accidental damage to your caravan. You can also cover extras such as your annexe and contents.
There are usually two types of caravan insurance covers, comprehensive (which covers both parked and mobile caravan) and onsite (which cover parked and/or immobile caravans).
Source: KnowRisk
