What does boat insurance cover?

insurance

The insurance is intended to protect pleasure, motor, and sailing boats and in most cases can also include inflatable and rigid inflatable boats, as well as jet skis.

What are the main guarantees?

  • Compulsory civil liability: coverage of damage caused to third parties. It is the essential and mandatory cover to be able to navigate.
  • Voluntary civil liability: coverage above the amount required by law. Spanish legislation determines that the insurance must cover a minimum of 120,000 euros per victim with a maximum of approximately 240,000 euros per claim, while for material damage and economic loss the maximum is set at approximately 96,000 euros. per claim.
  • Total loss: covered by the insurance company when the repair of the damage exceeds 75% of the real value of the boat.
  • Theft/Fire: the insurance covers both theft and fire of the boat as well as the property inside the boat.
  • Property damage: Includes damage to the boat’s hull, engine, fittings, or sails as a result of the sinking, grounding, collision, or impact with fixed or floating objects, storm, fire or explosion, and theft.
  • Salvage and maritime assistance/towing: the subscription of this guarantee in the insurance of the boat covers the cost of the operations of towing the boat in case you need help in the event of possible sinking or destruction of the vessel. This is a highly recommended guarantee because, after an accident at sea, the rescue teams can send the rescue bill to the owner of the boat.
  • Removal of remains: If for any reason the boat is damaged and remains of the boat are left at sea, the insurance takes care of this. The maximum amount covered is normally €30,000.
  • Boating assistance: Just like when you buy car insurance, you can buy travel assistance insurance for your boat. Thus, if an accident occurs while you are traveling by boat, all the resulting costs will be covered. Some of them, depending on the insurance company, can be hotel accommodation costs, boat care, medical expenses abroad, or the shipment of medicines. This coverage can be especially important if you are traveling to foreign countries. This service includes medical advice, medical transfer of the sick and injured, transport of mortal remains, and even the dispatch of spare parts for the boat in the event of a breakdown.
  • Legal defense: legal assistance and criminal defense in the event of a claim covered by the contract.
  • Occupant accidents: Occupant health costs are covered by boat insurance in the event of an accident.

What does compulsory civil liability insurance cover?

Civil liability insurance protects third parties from damage that we may cause them through the use of the insured boat. In other words, it does not cover damage to our boat. It is important to note that compulsory insurance only covers civil liability when the boat is in the water.

How does assistance at sea work?

The insurance company provides the telephone numbers or the radio frequency of marine rescue to be towed to the nearest port. The insured must advance the amount of the towing and the company will reimburse him afterward.

Can we sail everywhere at sea and be covered under the same contract?

In many cases, the companies operate the internal waters of the European Union, the Mediterranean Sea, and external waters up to 200 miles from the Spanish or Portuguese coasts, as well as crossings between the Canary Islands and the Iberian Peninsula.

In cases where it is necessary to extend the navigation areas, it is possible to ask our insurer to cover the extension. In general, the insurance company will ask the areas where we will sail and the time of the crossing that we will make.

How many places do I have to ensure if the boat has a maximum capacity of 8 people but we are normally 2 people on board?

Always indicate the maximum number of places allowed on the boat to cover passenger accidents.

Is the theft of objects on the boat generally covered?

Normally, damage insurance policies cover the theft of objects. For this, it is necessary to submit a list of the accessories you have onboard your boat to your insurer.

What is the maximum age that the boat must have to be able to take out all-risk insurance?

The maximum construction date of the boat is between 15 and 20 years. If the boat is over 20 years old, expertise must be carried out and will be at the expense of the owner of the boat.

What is the difference between boat insurance “under English conditions” and “under Spanish conditions ”?

When taking out insurance for your boat, you should be aware that foreign regulations may apply. This is why some insurers allow you to take out a contract under Spanish or English “Institute Yacht Clauses” for the policy of your boat. In the first case, the risks covered by the insurer are clearly stated in the conditions of the policy taken out. The English clauses include everything that is not explicitly excluded. In other words, the Spanish terms work by inclusion, while the English terms work by exclusion.

English contracts make it possible to agree on the value of the boat, while Spanish contracts insure according to the market value (the price of the boat just before the loss). English clauses normally apply to “high value” boats.

Many of the guarantees provided in the English clauses are not intended for pleasure craft, which would normally be better covered by the Spanish clauses. The English classes have a number of limitations that are not found in the Spanish clauses.

What value should we tell our insurance company?

In most cases, the companies establish that the sum insured must correspond to the actual value of the boat at the time of taking out the policy.

  • If the boat is new, we must indicate the value it cost us. If we have also added a number of additional equipment, we must add these amounts because they will be included in the insurance of our boat.
  • If, on the other hand, the boat we insure is used or second-hand, it is important to check that the value we declare corresponds to the real value, that is to say, the value that the boat would have on the second-hand market and with the equipment it has. In any case, it will be necessary to indicate the average market value for this boat, because this will be the amount for which our insurer will compensate in the event of total loss.

If you do not have a boat registration number, is it possible to take out insurance?

Some boats under 5 meters or with a foreign flag do not have a registration, in these specific cases, you will have to ask for the hull/chassis number to be able to insure it.

The boat has a foreign flag, is it possible to insure it?

Yes, it will be necessary to provide the registration number if it has one, or the hull/chassis number to identify it in the insurance policy.

Is it possible to sail without compulsory insurance?

All motorboats are required to have civil liability insurance. Sailing without compulsory insurance can be sanctioned. Ports usually require this to allow a boat to stay or enter port facilities.

In the event of total loss insurance, what would be the amount of compensation?

The amount of compensation will be the market value of the boat, that is to say, the value of the boat before the loss.

What are the types of boat registration in Spain?

The regulations governing the registration of boats in Spain establish certain lists in which the boats are grouped according to the activity for which they are intended. Pleasure boats are registered in the 6th or 7th list. In the 6th list are registered the boats intended for lucrative activities (rental use) and in the 7th list are those for private use.

How soon can I take out a boat insurance policy?

In the majority of cases, the insured can obtain an insurance certificate the same day the policy is taken out. Signing up is quick and easy.

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By Daniel Lincoln

Daniel Lincoln is the founding member and Manager of Multiple Websites for First SEO Paper, also the owner of high-level quality sites focusing on General Categories only.

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