Ask the Expert: Check Your Policy

Published: Tuesday, January 1, 2019
By: Kristina Cherubino, Senior Underwriter, Pantaenius America Ltd.

Question:

When is a good time of year to check the coverage I have on my boat/yacht insurance policy?

Answer:

The off-season is the perfect time to review your boat/yacht insurance policy and make sure you have the coverage and navigational limits you require to protect your investment. Before contacting your agent or carrier to make any policy changes, be prepared to answer the following questions that may be asked upon your request:

Has your vessel had a change of ownership or purpose?
Is the insured’s name still the same? Also, will your vessel continue to be used in the same manner, such as for pleasure use only or for charter?

How and where will you be securing your boat/yacht?
If you’re changing your mooring location during the off-season, your insurance provider may require the full physical address of your new marina/berth. What measures will you be taking to winterize your boat/yacht?

Is your emergency contact information remaining the same?
If your boat/yacht is moored in an area that could be affected by inclement weather, can your agent or carrier reach you quickly to confirm the location and condition of your boat/yacht? Have you also provided contact information for a backup person in case you can’t be reached in the event of an emergency?

What are your travel plans? Any changes to the insured property, etc.?
Discuss your upcoming cruising itinerary with your agent or carrier for navigational ranges you’ll need, as well as any changes, such as to tenders and outboards, mooring and/or marina locations.

Will you require broader navigational limits?
It’s imperative to review the Cruising Area stated on the declaration pages of your policy. Be sure to check that the navigational limits stated on your policy are what you will require to fulfill your cruising needs for the policy term. Don’t assume that if your cruising plans change, that you are still within your scope of coverage or that the Cruising Area changes with you automatically. It is essential to note that if you cruise outside of the Cruising Area stated on the declaration pages of your policy, you may find yourself in breach of your contract, which could cause the denial of a claim or worse, void coverage of your policy.

Are you planning to race or participate in any regattas, rendezvous, etc.?
Again, review the Cruising Area stated on the declaration pages of your insurance policy, even confirm with your insurance carrier to be certain that your policy covers the navigational limits for the event(s). For example, if you were planning to participate in the 2019 Transatlantic Race that begins in Newport, RI, and ends in Cowes, United Kingdom, your coverage would need to include the navigational limits from the start and finish of the race.

Ask About Ways to Save on Your Boat/Yacht Insurance Policy
When your policy is up for renewal, it’s possible to negotiate with your insurance company for better terms by:

Discussing any improvements you’ve made to your boat/yacht that could impact its insured value. Consider the current Fair Market Value of your boat and insure within that range. This way you do not under-insure or over-insure your boat/yacht, which could cost you money.
Avoiding catastrophic areas during the hurricane season.
Asking if your insurance company offers discounted rates if you are a member of an organization or club, or for further training and education, etc.

Have a question about yacht safety or insurance? Send it to [email protected].

This article first appeared in the Winter Issue (Jan/Feb) 2019 of Great Lakes Scuttlebutt magazine.

tags: Boating 101, Insurance