Insuring your boat – what to look for

A boat is a major investment and waterways can be treacherous at times – minor boating accidents are not uncommon, but can be costly, so finding the right cover for your boat is a smart way to protect your investment.

What do I need to cover?

Boaties have many things to consider when insuring their vessel. Cover should include the boat, its contents – such as, the engine and rigging – accessories, including the dinghy and outboard motor, and damage to other boats. Also needed is cover against death or damage to other people, including crew and passengers. A minimum of $10,000 is the usual amount insured.

Types of boat insurance

Similarly to cars, boats can have comprehensive cover and third party cover. Comprehensive insurance provides protection if a craft suffers accidental loss or damage, there is a death or injury to another person or damage to another person’s property. Third party cover, which is mandatory, provides protection if there is damage to another person’s property. It does not cover your own property or you, however. There are also additional options available: you can get cover for activities such as racing, cruising, waterskiing and commercial use.

Boat insurance providers

Both large and smaller insurance companies offer boat insurance. Major companies, such as NRMA and Suncorp, for example, offer boat and pleasure craft insurance. Then there are the specialist companies, such as Club Marine and Nautilus Marine Insurance Agency, who also offer boat protection policies.

The top four boat insurance essentials

• Adequate personal liability cover – for your passengers and crew.
• Agreeing the best value for your boat – should you choose market or agreed value? (Market value being the monetary worth of a boat decided upon at the time of a claim while the agreed value is decided when a policy is taken out.)
• Getting suitable (and enough) cover for your contents and accessories, and
• Cover for additional activities, such as waterskiing and yacht racing if these are relevant to your recreation.

Pitfalls – keep watch for…

Make sure your boat is valued by a licensed assessor. If you do not insure for the full or most appropriate value, you will only receive a percentage of what you need for repairs / replacement if damage occurs.

And, of course, be aware that, like luxury cars, insuring boats with higher price-tags will usually mean higher premiums.