Adelaide’s Most Comprehensive Boat Insurance Policy Available.
Boat insurance is discussed here specifically for boats. There are insurance policies available that cover other marine craft such as jet ski’s.
Accidental loss or damage to your boat
Most comprehensive boat insurance policies will cover you, for accidental loss, damage, fire and/or explosion and theft to your boat which occurs during the period of insurance:
- Within a distance; typically 250 nautical miles off the coast of Australia
- Whilst your boat is in transit on the trailer by road, rail or ship in Australia, provided your boat is designed to be towed on the trailer and all laws regarding the towing of your boat on the trailer are complied with.
Most comprehensive boat insurance policies will:
- Repair or replace your boat
- Pay you the reasonable cost of repairing or replacing your boat
- Pay you up to the ‘Market Value’ of your boat unless your schedule shows that your boat is insured for an ‘Agreed Value’, in which case, will pay you up to the ‘Agreed Value’.
The ‘Agreed Value’ will generally only be paid when there is a ‘Total Loss’ or the entire boat can not be satisfactorily repaired.
In respect of the repair or replacement of property, most comprehensive boat insurance policies will reimburse you for the cost of reasonable repairs and/or replacements required to bring the property as near as possible to its appearance and condition immediately prior to the claimed loss or damage.
In respect of damage to a motor up to five years old, most comprehensive boat insurance policies will reimburse you for the costs of new mechanical and electrical components up to the ‘Market Value’ of the motor.
Comprehensive boat insurance policies may also pay you in respect of an accident or theft for:
- Fishing gear, water ski equipment, diving equipment and tools, limited to say $1,500 for each item and $10,000 in total for all claims combined,
- Personal effects limited to around $1,500 for each item and $10,000 in total for all claims combined.
Comprehensive boat insurance policies will cover your boat:
- If you are involved in volunteer marine rescue
- For latent defect
- For repairer’s negligence
- For lawful seizure, but not if it results from a lack of reasonable care in the safeguard, protection and /or security of your boat or illegal activities
- For recovery/detention.
Some insurance companies will also cover you for loss of entry fees that are not refundable and paid by you and your crew should a claim under the policy cause you to withdraw from a fishing tournament or yacht racing event up to an amount.
Most comprehensive boat insurance policies will not cover you:
- For loss or damage to cameras, portable radios, mobile phones, moorings, provisions and fuel
- For theft by persons to whom your boat is entrusted
- For loss or damage to an outboard motor when secured to your boat in a manner other than that specified or recommended by the manufacturer of the motor
- (a) for loss or damage to personal effects, fishing gear, diving equipment, water ski equipment and tools unless they were stored on or being used on your boat at the time of loss or damage
- (b) for theft from your boat of personal effects, fishing gear, diving equipment, water ski equipment and tools unless there is physical evidence of violent and forcible entry into a lockable part of your boat
- For loss or damage to sails caused by the wind or water unless your boat is stranded, sunk or in a collision or suffers mast or rigging failure
- For loss or damage caused by wear and tear, deterioration, vermin, corrosion, electrolysis, mould, inherent vice and/or, lack of maintenance
- For malicious damage caused by any person or persons named in the policy
- for mechanical parts that are not in accordance with the manufacturer’s original specifications
- For loss or damage to a motor caused by or resulting from seizure and/or overheating unless caused by an external blockage
- For loss or damage, which is a secondary financial loss sustained by you as a result of loss or damage to your boat or other insured property or associated loss or damage
- For emotional, psychological or sentimental loss which occurs due to loss or damage sustained to your boat
- For damage to the tyres of your trailer that occurs by applying the brakes, or by punctures, cuts, or bursting of tyres
- For the cost of repairing or replacing any part of your boat due to fault or error in design or construction
- For the cost of repairing or replacing any part of your boat due to mechanical and/or electrical breakdown or failure
- For the cost of improving or altering your boat. Dismantling, diagnosis and reassembly costs where you make a claim for loss or damage to your boat
Liability to other people
Most comprehensive boat insurance policies cover people for their legal liability to pay compensation in some circumstances, to another party.
- Use of your boat
You or any person in charge or control of your boat with your permission (excluding boat builders, repairers, yacht clubs and marine operators except as provided by this section), for death or injury and/or damage to property during the period of insurance caused by or arising out of the use of your boat.
- Use of another boat
You for death or injury and/or damage to property during the period of insurance caused by or arising out of the use by you of another boat (including its hull, motor, masts, spars, rigging and sails and tender), provided you have permission to use the other boat from its owner, your boat is not being used at the time and you or any member of your household do not own or have an interest in the other boat.
- The discharge or escape of fuel, lubricants or sewage from holding tanks
You for property damage during the period of insurance caused by or arising from sudden and accidental pollution directly or indirectly arising from the discharge, release or escape of fuel, lubricants or sewage from holding tanks from your boat, other than liability arising from or connected with your own recklessness, deliberate actions or misconduct, the recklessness, deliberate actions or misconduct of any person in possession of your boat with your permission. Most comprehensive boat insurance policies will pay no more than $500,000 for any one discharge, release or escape or series of discharges, releases or escapes arising out of the same event in relation to the cover, including legal expenses.
(Generally only applies when the policy shows that you have selected this option)
You and/or any person using your boat with your permission and/or any person engaged in water-skiing, wake boarding and/or aquaplaning activities (using only recognised and commercially manufactured water ski and/or wake boarding equipment and/or barefoot water-skiing) while being towed by your boat, for death or injury to a water skier being towed by your boat, death or injury to any person caused by a water skier who is being towed by your boat, property damage caused by a water skier who is being towed by your boat.
- Marina liability cover
You for legal liability imposed upon you by the terms and conditions of a lease or agreement with you for the provision of a berth, mooring or storage facility for your boat.
- Legal costs
Comprehensive boat insurance policies generally pay for all legal costs and expenses incurred in defending any court proceedings which may arise in respect of any liability covered.
Injury to the Named Insured
Comprehensive boat insurance policies generally cover
If a named insured is injured during the period of insurance in an accident when using your boat and that Injury results in:
- Permanent and total loss of sight of an eye;
- Permanent and total loss of the use of a limb;
- Permanent and total loss of the thumb or index finger.
Remember not all insurance companies offer the same additional benefits, so it pays to discuss comprehensive boat insurance Adelaide residents can purchase with your boat insurance broker from Houston Finance, who will help you understand the differences between the insurance company products. Insurance brokers at Houston Finance are fully trained to handle all of your boat insurance questions.