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Comparing yacht insurance: what to check in the small print
Short answer
The premium is easy to compare, the cover is not.
Comparing what a yacht policy pays after a loss means checking six clauses in the wording: value,
insured perils, negligence, excess, salvage and cruising area.
Most owners in the UK, Ireland or the Netherlands compare yacht insurance by premium and by the summary sheet the broker sends. The summary is written to sell. What decides a claim is the full policy wording, and you are entitled to see it before you buy. Ask for it, read it with a pencil, and do not rely on a guide written by a single insurer or broker: it will naturally explain its own product and not the gaps in it.
Six clauses decide most of the outcome. Value: agreed value or market value, and whether the insurer can argue underinsurance. Perils: is cover written as a list of named events, or as everything not excluded? Negligence: what happens if a surveyor or loss adjuster calls your mistake gross negligence? Excess: does it still apply to theft and total loss? Salvage: is it paid on top of the sum insured or out of it, and only on an official order? And the cruising area, with its exact limits.
Practical advice: put two wordings side by side and find these six clauses in each. Note the clause number next to every answer, so you can quote it later. If a wording is silent on a point, ask the insurer to confirm in writing. Check the warranties too, such as rigging age, survey requirements and laying up rules, because a breached warranty can void a claim that is otherwise covered. A cheaper premium is no saving if the wording pays less when it matters.
Worth remembering
Premium
on the quote and easy to compare
Wording
in the small print and decisive after a loss
Compare policy wordings, not brochures.
Questions
What owners ask us about this
Can I see the policy wording before I buy?
Yes, and you should insist on the full wording rather than a key facts summary. A reputable insurer or broker will send it without hesitation.
What matters more, the premium or the wording?
For a claim, the wording. A low premium does not help if the boat is valued at market value or salvage comes out of the sum insured.
What is a warranty in a yacht policy?
A condition you must meet, such as a valid rig survey or a laying up period. Breaching it can let the insurer refuse a claim.
Related
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