Is my boat covered when it's out?

Is my boat covered when it's out?

It seems that boats can be costly even when they aren’t in the water.

As people make the most of the remaining warm weather, IAG in NZ has reviewed boat claims made over the last year and it is clear that boat accidents on the road or even at home when you parking can be as costly and inconvenient as those that take place on the water.

The message is: take care no matter where you are with your boat.

Off the water many accidents occurred while the boat was being towed. Remember the reduced speed limit for towing trailers and what your car can safely tow. The weight of your boat, they type of trailer and the strength of your towing vehicle impact how easily you can brake and turn – crucial manoeuvres to help you stay out of trouble on the road.

Extra care is needed when getting the boat into or out of the water – a number of accidents happen while loading, or launching boats.

Once on the water a different range of risks need to be addressed. Some may be out of your control such as submerged objects like logs and rocks. If you don’t know it’s there, there’s not much you can do about it. Likewise, there is a limit to how much you can do to avoid the truly rogue wave. But vigilance is the best piece of advice. Look closely for signals such as unusual patterns on the water. Watch your speeds and take note of the movement and routes taken by other vessels: that can suggest safe courses to steer.

IAG NZ data shows that one in four boat claims (58%) across all IAG brands last year related to accidents on the water and off the water, and the average claim cost of boat accidents are over $4000. Apart from worrying about accidents, boat owners also face the risks of burglary (14% of claims), storm (4% of claims) and fire (2% of claims). So it is no wonder insurance has a place in the tackle bag of boaties.

A question sometimes asked, however, is do I need any special boat insurance or will my usual contents insurance policy cover any damage incurred?

IAG’s claims expert Chris Kiddey says you should definitely not assume that your Contents policy will provide cover to any kind of boat. “AMI’s Advanced contents policy covers ‘watercraft’ only if they’re worth less than $500; State’s Comprehensive policy allows $2,000 and most seafarers will know that $2,000 isn’t much when talking about boats. Both policies are designed to give some piece of mind for lightweight and more common water toys such as the kids’ kayaks, but both brands also offer specialized boat insurance to their customers,” Chris said.

The next question is how much does the boat insurance cost? It actually depends on how much your boat costs, how much boating experience you have and a lot of other variables. That is why it is best to discuss with your insurer to get a specific quote, but we can give you a general idea by using an example.

If you are living around Auckland city aged over 55 and own a 2005 Haines Hunter SS700 Hardtop, value $84000, Yamaha engine 200HP, Voyager tandem braked trailer with Trojan tow ball lock, your AMI boat insurance premium will be around $1000 annually with an excess fee of $100.

That is a standard quote, but there are factors which could make a saving in your premium. For example, if you have a NZ boat master/skipper certificate, or are willing to increase your excess, or have multiple insurance policies with one insurer, you might be able to reduce your boat insurance premium from this insurer.

Although boat insurance can cover some of your risks, it is important to note that you still need to take reasonable care of your boat otherwise your insurance won’t cover you.

“The most common type of claim not covered in 2015 was for the breakdown or failure of equipment, often due to maintenance or wear and tear issues.” Chris said. “This sort of claim is almost never covered by insurance companies because boat owners are expected to take reasonable care of their boat, just like you need to take good care of your home and car.” Chris said.

Maritime New Zealand indicated that one in five households owned at least one boat, and they predicted that 27% of New Zealanders will own at least a boat by 2031. To help many boat owners with a peace of mind while out on the water, IAG also recommends you to pay close attention to Water Safety New Zealand’s Boating Safety Code; take note of their list of essential equipment; and consider taking a ‘Day Skipper’ course. After all, insurance might cover damage to your boat, but the safety of you, friends and family is far more important.

ENDS

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