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Which boat damage is usually covered, and which is not?
Boat hull insurance does not pay for every kind of damage. Most policies list the events they cover, and anything not on that list, or expressly excluded, stays with the owner. Some policies are named perils covers that only insure a short list such as storm, fire and theft of the whole boat. Others are written on an all risks basis and include accidents like grounding or collision, but still exclude wear and tear, gradual deterioration and a set of other causes.
Below are 20 situations every boat owner knows. For each one you see whether hull cover usually pays, whether it depends on the wording, or whether it is usually excluded, plus what to look up in your own policy. This page describes the market in general, not a specific policy. Which damage is covered in your case is decided by your insurer under your policy wording.
20 everyday cases
- usually covered: by full hull cover that includes accidents
- depends on the policy: conditions, limits or wording decide
- usually excluded: most policies do not pay for this
Grounding while anchoring
While anchoring in a bay the boat touches a rock. Rudder and keel are damaged.
usually covered
Running aground is a standard accident event in full hull cover. A policy limited to storm, fire and theft does not include it.
Check in your policy: Is grounding or accident a covered event? Does the policy pay for a lift out and hull inspection after a grounding, even if no damage is found?
Collision in the marina
A gust pushes the boat against the pontoon and the next boat while berthing. Your own hull is cracked.
usually covered
Collision with fixed or floating objects is a standard accident event in full hull cover.
Check in your policy: Is accident cover included? Damage to the other boat is never a hull matter: that is what your third party liability insurance is for.
Force 7 wind tears off the cover
It blows force 7 all day at the berth. The canvas cover rips out of its fastenings and is gone.
depends on the policy
Many policies only accept storm damage above a minimum wind force, often Beaufort 8. Below that it can count as ordinary weather, which is excluded.
Check in your policy: Is storm defined with a wind force? Is the cover insured as equipment? Old, brittle canvas will usually count as wear and tear.
Hail cracks the windscreen
A hail shower passes over the harbour. The windscreen is cracked and the gelcoat dented.
usually covered
Hail is one of the natural perils that almost every hull policy covers, even basic ones.
Check in your policy: Is hail listed among the natural perils? Is there a separate excess for weather damage?
Lightning kills the electronics
After a thunderstorm the chartplotter, radio and autopilot no longer work.
depends on the policy
A direct lightning strike is usually covered. Damage from a power surge, or short circuits in the electrics, depends on the wording and is often excluded as mechanical or electrical breakdown.
Check in your policy: Does the definition of lightning include surge and overvoltage damage? Are electrical short circuits excluded? Ask the yard to confirm the cause in writing.
Flood: boat breaks loose and sinks
After days of rain the river rises. The boat breaks free from its berth, drifts against a wall and sinks.
depends on the policy
Flood is not always a named peril. Where the policy includes accidents, the collision and the sinking that follows are usually covered. A storm only or named perils policy may not respond.
Check in your policy: Is flood a named peril? Does the policy include accidents such as collision and sinking?
Fire on board
A pan catches fire in the galley and the flames spread into the saloon.
usually covered
Fire and explosion are covered by almost every hull policy.
Check in your policy: Are scorch marks without open flames included? Some policies only pay for a fire with flames.
Frost cracks the engine block
The cooling water was not drained before winter. At minus ten degrees the engine block splits.
usually excluded
Frost and other weather effects are usually excluded, and so is damage caused by missing winterisation or poor maintenance.
Check in your policy: What winterising and maintenance duties does the policy set? Keep invoices from the yard.
Outboard stolen from the transom
Overnight, thieves unbolt the outboard engine from the boat at the pontoon.
depends on the policy
Theft of parts is often only covered by full hull cover, and usually only if the engine was secured with an outboard lock or locking bolt. Basic policies may only insure theft of the whole boat.
Check in your policy: Is theft of parts covered? Which security device does the policy require? Is an excess deducted for theft?
Boat stolen together with its trailer
Boat and trailer are parked in the drive. In the morning both are gone.
depends on the policy
Theft of the whole boat is widely covered, but policies often set security conditions for boats on land, such as a hitch lock, a chain between boat and trailer, or a fenced and locked storage place.
Check in your policy: Which locks are required on the trailer? Does the boat have to be kept on fenced, locked ground or in a locked building?
Vandalism in the harbour
Strangers scratch the hull at night and slash the cockpit cushions.
usually covered
Malicious damage by strangers is part of most full hull policies. Basic named perils covers often leave it out.
Check in your policy: Is malicious damage covered? Are there conditions for boats stored on land?
Engine failure from wear
After many hours the engine gives up. The yard finds worn bearings.
usually excluded
Wear and tear and mechanical breakdown are excluded in nearly every hull policy. Some insurers sell a separate machinery extension, but even that rarely pays for plain wear.
Check in your policy: Is there a machinery extension, and what exactly does it cover? Is there an age limit for the engine?
Osmosis on the hull
When the boat is lifted in autumn there are blisters in the gelcoat below the waterline. The surveyor finds osmosis.
usually excluded
Osmosis is usually excluded as gradual deterioration. A few policies cover it for young boats for a limited number of years.
Check in your policy: Is osmosis excluded? Is there an exception for new boats, and up to what age?
Mice over the winter
In spring the cushions are chewed and cables bitten through. Mice have spent the winter on board.
usually excluded
Damage by rodents, vermin and other animals is a common exclusion.
Check in your policy: Is animal damage excluded? Electric boats sometimes have special rules for consequential damage.
Accident under the influence
After a party ashore the skipper casts off after drinking and hits the harbour wall.
usually excluded
Insurers can reduce or refuse payment where the skipper was grossly negligent, and alcohol is one of the clearest cases. Policies that waive the reduction for gross negligence almost always keep it for alcohol and drugs.
Check in your policy: How does the policy treat gross negligence? Is there a waiver, and does it exclude alcohol?
A friend drives without the required licence
A friend takes the helm of your motorboat without the licence the waters require and hits a buoy.
usually excluded
Damage caused by a skipper without the officially required licence is usually excluded.
Check in your policy: Who may skipper the boat? Which licence is required for the boat and the waters you use?
Fenders and a line go over the side
While casting off, two fenders and a mooring line slip into the water and drift away.
usually excluded
Loss of loose items that fall overboard is excluded in almost every policy.
Check in your policy: Which equipment counts as insured, and which items count as loose?
Damage during a race
During a regatta two boats touch at the windward mark.
depends on the policy
Racing is often excluded or limited, for example to club races. Some policies include all regattas, and motorboat races usually need a separate agreement.
Check in your policy: Are regattas covered, and which kind? Is a racing extension needed?
Winter storm on a seasonal policy
In December a storm blows the boat off its cradle in winter storage. The policy only runs during the sailing season.
usually excluded
A seasonal or laid up policy only covers the dates in the schedule. Outside those dates there is no cover, even ashore.
Check in your policy: Which dates does your schedule show? Is winter storage ashore included?
No compensation for the lost season
After a covered claim the boat spends ten weeks at the yard. The summer cruise is cancelled, the berth is paid anyway.
usually excluded
Loss of use, lost charter income and loss of value are consequential losses and usually excluded. The repair itself is a separate matter.
Check in your policy: Is there any cover for loss of use or charter income? Most private policies have none.
What you can do so the claim is paid
Many claims fail not because of the policy type but because a lock was missing or the claim came too late. These points are in your hands.
- Read the theft conditions and follow them: outboard lock or locking bolt, hitch lock on the trailer, chain between boat and trailer, fenced and locked storage on land.
- Keep proof of maintenance: service by the book, invoices kept, engine drained before winter.
- Report every grounding, even when you see no damage. Hidden damage is easier to prove when it was reported straight away.
- Report fire, theft, break in and vandalism to the police at once, and in a harbour also to the harbour office.
- Take photos, limit the damage (pump, secure, cover), let the insurer inspect before repairs start and do not sell damaged parts beforehand.
- If your boat is insured through NAMMERT: claims hotline +49 3375 566 75 05, after hours +49 3375 29 28 95, or report it in mein NAMMERT.
Who decides in the end
This page explains how boat policies are commonly written. It cannot tell you what your own policy covers. That is decided by your insurer, based on your policy wording and on what actually happened. If you are insured through NAMMERT, we handle the claim with you and submit it complete to the insurer.
More on our hull insurance and on our claims page.
Questions and answers
What is the difference between named perils and all risks hull cover?
A named perils policy only pays for the events it lists, often storm, fire, lightning and theft of the whole boat. An all risks policy covers accidents such as grounding and collision as well, but still has exclusions, for example wear and tear, frost and osmosis.
Does hull insurance pay for damage to another boat?
No. Damage you cause to other people or their boats is covered by third party liability insurance, not by hull cover.
Why does the wind force matter?
Many policies define storm by a minimum wind force, often Beaufort 8. Damage at lower wind speeds may then count as ordinary weather, which is excluded.
