by Insurance Blogger on October 1st, 2010
With the recession affecting goods in particularly the luxury end of the market, if you own a yacht or a boat, it pays to shop around at the moment for boat insurance, and to compare the numerous offers to get the best value for your money in what is a bouyant competitive market.
Yacht insurance covers loss or damage to yachts and/or damage or loss caused by the yacht to third parties. Yachts can be a significant investment hence requiring comprehensive cover to prevent losses due to unforeseen events is essential. As a yacht owner you need the composure which you will get when you know that you are covered, should anything untoward happen.
Providers of yacht insurance in most cases tailor make the policies for your individual needs. You should therefore assess the risks you and your yacht will be exposed to during intended use. You should also figure out the cruising range for your yacht. Will you use your yacht abroad or in the confines of your country coastal areas? How often will you travel abroad? Such questions should guide you in assessing your needs. When you know what you need you can obtain quotes from the different insurers.
The sum insured for your yacht can be based on a value that is agreed on or on the actual value of the yacht taking into account any depreciation. Most policies however are based on the value that is agreed on. That way the losses due to depreciation are not incurred in the event of total loss of the yacht. Repairs can also be made with new components.
It is important to understand the terms and conditions in the proposed policies so that you do not overlook something that may return to haunt you. Normally, every policy has exclusions that try to guard against unjustified or fraudulent claims. In the event of claims you will need to satisfy the insurer that you took reasonable action to prevent the occurrence of the risk. Try to ensure therefore that you understand the exclusion clauses as failure to adhere to conditions may result in the policy being voided. Some insurers can have restrictions on the models that they insure. Make sure your particular model is covered. Policies may include geographical limits. This however may be extended when needed.
It is beneficial to join a yacht club in your locality so that you can get information on issues pertaining to yacht ownership. Usually as a member of a yacht club, you will be entitled to a discount from partner insurance firms. They may also provide you with tips and advice on what to watch out for when selecting a suitable policy. You could also benefit from checking out insurers that do not specialise in yacht insurance as they may be cheaper than yacht insurance companies.
Things to consider when getting yacht and boat insurance quotes online
Different companies provide a variety of policy wording and you may be confused what sort of policy you require. The cover offered by an insurance company and the service provided by it can differ greatly. Hence remember that if you buy a cheap policy, you may end up spending more money in the long run, if you make a claim. The most important points to consider before you buy insurance for your boat are:
Third party liability: You must always go for liability insurance as this covers you in case you have caused damage to another boat or have caused injury to a person.Comprehensive cover: This insurance covers you for any accidental damage, theft, fire and vandalism.Theft cover: When your boat is not in use, this policy covers you against theft. However, each insurance company has different requirements and you have to adhere to them or you may be left uninsured.Towing: Most policies cover expenses which cover towing waterskiers, kneeboards or inflatable toys, though restrictions may apply.Policy excess: This is the amount you have to pay if any claim is made.
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Ways to save money on your boat and yacht insurance
Another way of reducing the cost of boat insurance policy is going for voluntary insurance excess. But remember that in an event of a claim you will have to pay the excess. So ensure that you are able to strike a balance between cost of the insurance and the excess you choose when trying to reduce your boat insurance premium in the UK.
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