Total loss only or comprehensive hull cover: what does each policy pay?

If you cannot get comprehensive cover for an older boat, or want to save on the premium, you will come across total loss only cover. The name says what it does: it pays when the boat is lost altogether, for example through sinking, fire or theft of the whole boat. For anything less, a partial loss, it pays nothing. That sounds clear, but in a claim it often is not, because the line between a partial loss and a total loss can be argued over.

Most damage on the water is not a total loss. A collision in the marina, a grounding that bends the rudder, a broken mast, a stolen outboard or a forced companionway hatch cost anything from a few hundred to many thousands of euros, and under total loss only cover the owner pays for all of it. If a boat is badly damaged but not destroyed, it usually counts as repairable, and the policy does not pay even when the repair costs almost as much as the boat.

Total loss only cover makes most sense for boats of modest value, where you would carry small repairs yourself anyway. If the boat is financed, used a lot or worth a good deal, comprehensive hull cover is the better choice. Read the wording in between: some cheaper hull covers are not pure total loss cover but also pay for damage from named perils such as storm, hail, lightning, fire and explosion, while collision, grounding, theft of parts and vandalism come only with wider cover. Check too whether a loss is paid at market value or at an agreed value. And remember that neither replaces third party liability cover, which pays for damage to other boats and to people.

Worth remembering

Most damage on the water is partial damage.