Hard to Insure a Boat: Everything You Need to Know About Special Cases
- BoatOn
- Feb 18, 2021
- 3 min read
Boat insurance isn't compulsory, even though it's very strongly recommended. Insurance companies take a number of special cases into account that can make your boat difficult to insure. If this is your situation, in this article we explain what makes your boat hard to insure and we share our secret for finding the ideal cover.
Insurance Outside Europe
Insuring your boat to navigate outside Europe is a headache. Insurance companies have a pre-defined zone within which they provide cover. Beyond that zone, insurance premiums generally increase enormously.
Insuring a boat to navigate outside Europe is complicated because the further you venture, the more risk you expose your boat to, and therefore the more likely the insurance will need to intervene in the event of a problem.
Insuring a boat outside this zone can however be possible if you request a special exemption, though it is rare that this results in a positive answer.
Insurance in Corsica
Corsica is in Europe, but insurers generally increase the premium for navigation in Corsica.
The reasons are varied. For example, repair costs are higher than on the mainland.
There are, nonetheless, insurers who will provide cover for Corsica.
Insurance for a Transatlantic Project
If you are planning a transatlantic crossing, you will encounter reluctant insurance companies.
Insuring the risks of a transatlantic crossing is not a situation preferred by insurers.
A large number of companies refuse to insure outside Europe. Some companies such as Pantaenius are specialists in insurance beyond the zone of validity of contracts — such as those offered by April Marine and Helvetia seen above. However, at Pantaenius, premiums are generally higher.
Insurance in a High-Risk Zone
Insurance companies are often reluctant when it comes to insuring a boat located in a high-risk zone. For example, French Polynesia and Réunion Island are considered high-risk zones. In these areas, insurance companies work through local brokers who have extensive knowledge of the risks.
The risks in these zones arise from specific climatic conditions. Zones prone to cyclones are the most complicated for insurance companies.
Insurance for a Boat Used for Rental
If you want to insure a boat that you intend to rent out, you must inform your insurer. Some insurers refuse to cover the boat. In other cases, rental activity increases your premium because the risks increase due to the boat being piloted by someone who may not be as experienced as you. The premium increases even further when the rental takes place without a skipper.
Insurance for a Boat Over 20 Years Old
Insuring a boat that is over 20 years old becomes a challenge.
Insurance companies will request a survey in order to insure your boat at its fair value and to verify that the hull presents no major risk that could materialise in the coming years and would need to be covered by the insurer.
However, if the theoretical premium proposed before the survey is more attractive than your current premium, it may be worth having it surveyed. The cost of the survey will quickly be recouped by the lower premium.
Beyond 20 years, the insurance premium can increase to cover the theoretically more frequent risks, even if you have always lovingly maintained your boat.
Beyond 40 years, some insurance companies refuse to cover the vessel.
Insurance for a Boat as Your Primary Residence
If the boat you wish to insure is your primary residence, your premium will be much higher than for standard insurance. The boat is more exposed to domestic risks if you live on board. Daily cooking, electrical connections in constant use — these everyday activities can lead to domestic accidents such as fires, water leaks, and so on. These incidents can occur more frequently, meaning the insurer will need to intervene more often. This is why the premium will be higher.
Finding the Ideal Insurance with BoatOn
With BoatOn, you simplify the management of your insurance. You save time and can save up to 40% on your current premium. BoatOn is a startup based in Bordeaux that is disrupting the pleasure boat insurance market. By offering an all-in-one solution covering maintenance, storage and insurance, the startup is able to offer a personalised journey and expert advice for every request. The team has over 15 years of experience in the nautical sector and responds to thousands of owners every year.
Feel free to share your feedback and suggestions about this article at paul@boaton.fr
