News Home Video Gallery Newsletters Photo Gallery Cruising Int
Sail-World.com : Five ways your boat’s insurance policy can fail you
Five ways your boat’s insurance policy can fail you


'Is he covered by insurance? Only the policy fine detail will tell'    .

Insurance is one of those things you hope you never have to use, but if you do, you expect the policy to fix the boat or compensate you fairly. If you haven’t taken a close look at your boat insurance, you could be surprised to find that you may not be entitled to a payout with some common types of claims.

That’s because unlike home or auto, boat insurance policies offer a wide range of coverage, from very little to a lot.

Naturally this varies also from constituency to constituency, but we recently took a look at the most common claims over the past five years, and here are some tips that could help you to decide on a new insurance company, or check-up on your current one:

Consequential Damage:
If you take hurricane losses out of the list of common claims, the number one claim is for sinking, and half of all sinkings occur at the dock when some small part below the waterline fails. The most common culprits include hoses/hose clamps, stuffing boxes, outdrive bellows, and sea strainers. But these parts most often fail due to 'wear, tear, and corrosion' which is a lack of maintenance issue, so policies won’t pay you for a new outdrive bellows or sea strainer.

But what about the rest of the boat sitting sunk on the lake bottom? Some policies won’t cover that, either, as they exclude any 'consequential' damage as a result of wear, tear and corrosion. That’s why you need 'Consequential Damage' coverage that covers losses that often start with a failed part.

Fuel-spill liability:
Some policies only pay the cost of cleaning up a fuel spill if it occurs due to a 'covered loss.' So if your sunken boat wasn’t covered because the outdrive bellows failed due to wear, tear or corrosion, the resulting fuel spill won’t be either.

Sometimes fuel spill coverage is subtracted from other liability payments. A better policy separates out fuel-spill liability and provides coverage up to the maximum amount you can be held liable for under federal law, which today is a whopping $854,000.

Salvage:
Hurricanes lead the list of most common claims from 2008 to 2012. In every hurricane boats get scattered and need to be salvaged and safely brought back to their storage area. That takes cranes, travel lifts, flatbed trucks, and other heavy equipment that typically costs hundreds of dollars per foot of boat length.

However, as a few American boaters found out after their brush with one of the worst recent hurricanes to hit the continent, Hurricane Sandy, some policies subtract the money paid to salvage the boat from what you get paid to fix the boat, while others only offer salvage coverage up to 25% or 30% of the insured value. A better policy provides separate salvage coverage up to the insured value of the boat – in addition to any payments to fix the boat or replace equipment.

Wreck removal:
When fires, sinkings, hurricanes or running up on a shoal destroy your boat, you end up with a 'wreck.' Most boaters assume their insurance company will cover the cost of cleaning up what’s left, but some policies will give you a check for the insured value and only a specified percentage for wreck removal – 3% to 10% is typical – and walk away.

That leaves your wallet short and you managing a job you have little knowledge of. Better policies pay up to the liability limit, usually $100,000 or more, to clean up the mess, and don’t let you go it alone.

Liability-only policies:
Looking through the claims files, injuries make the top ten list for payouts not because of their frequency, but because settlements tend to be expensive. Having no insurance could leave you open to a six-figure settlement. If you have a liability-only policy, the better ones will cover injuries as well as salvage, wreck removal and fuel-spill liability.



About the authors:
Boat Owners Association of The United States (BoatUS) is the USA’s leading advocate for recreational boaters providing its over half-million members with government representation, services such as 24-hour dispatch, on water boat towing as well as roadside assistance for boat trailers and tow vehicles, feature-packed boat insurance programs, money-saving benefits including marina and service discounts, and vital information that improves recreational boating. Its member-funded BoatUS Foundation is a national leader promoting safe, clean and responsible boating.


by Boat US

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=118944

8:31 AM Sun 2 Feb 2014GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.







Cruising USA















A case of crossed wires? A shocking situation! by Stuart Carruthers, RYA Cruising Manager,










Canal Boating in the Alsace with the Galley Guys by Greg Nicoll with John Armstrong,


World ARC fleet arrives in Darwin by World Cruising Club,






Where in the world are our strongest corals? by Hanny Rivera - Cohen's Lab,








Barnacle Busting by Neil and Ley Langford,


From Penguins to Polar Bears by Cherie Winner,




Polar research: Six priorities for Antarctic science by Mahlon C. Kennicutt II and colleagues,




NCI granted dedicated VHF Channel by National Coastwatch,


Positive news for cruising boats in Greece by The Cruising Association,














Blue Planet Odyssey - Beset in Arctic Bay ice + Video
Garcia Yachts Exploration 45 - Jimmy Cornell's newest adventure
Sustainable Seafood - How to purchase with confidence
Risks to penguin populations continues
ARC Baltic fleet head from Helsinki to Stockholm
Follow these tips when anchoring
Galley Guys meet the Spice Lady
North American Rally to the Caribbean - Get prepared to head south
If all else fails read the instructions!!
ARC Baltic fleet cruising and anchoring in the Finnish archipelago
Phuket Yacht Show: new kid on the block taking on PIMEX? *Feature
Vanuatu Customs making life easier for visiting cruising yachts
Baltic 4 Nations rally is now in full swing
Tropical Storm Bertha expected to become a typhoon
Flags at Sea, an infographic by John Tissott
Cruising lessons from ocean racers
Procedures set out for waterborne visitors to Vanuatu
17-year-old RNLI volunteer saves child in first rescue mission + Video
Teen names latest RNLI Shannon class lifeboat in Poole + Video
Fascinating opportunity with OceansWatch
Fake GPS signals detected when cruising the high seas   
Our new Cruising Editor editor remembers his first offshore adventure   
Blue Planet Odyssey - Jimmy Cornell playing catch up on North West Pa   
World ARC 2014 reaches Australia   
Venezuelan Port Control lift recent port restrictions.   
Seismic survey ship operating north of Aruba and Curacao   
Predictwind helps you pick the best time to depart   
Watch this whale lift a Kayak clear out of the water   
World ARC reaches half-way point in Australia   
Northern Scotland: Voyage to Orkney and Shetland Isles (Part 2) *Feature   
Drowning or electric shock? What you need to know to help save a life   
Costa Concordia - the $2.25 billion salvage operation ready to begin   
Northern Scotland: Voyage to Orkney and Shetland Isles, more photos *Feature   
Fort Lauderdale International Boat Show - New location and attractions   
Long Island waters could become more taxing this summer   
4.8 million Legos all at sea   
Tranquil, colourful and funky, Genoa Bay is a must stop for West Coast *Feature   
Scientist pioneered tracer to reveal hidden ocean flows   
Sail-World 2.0 - the Beta version- Please take a look   
Dredging activity near corals can increase frequency of diseases   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL VIR Cru USA
LocalAds   DE  ES  FR  IT