Boat insurance covers the amount that must legally be paid for injury or death of another person, or loss or damage to their property caused by the policyholder's boat. All types of boats can be covered including runabouts, cruisers and racing yachts. In Australia the option for boat owners are either comprehensive coverage or third party only coverage.
Boat insurance policies in Australia covers boats while they are being navigated in inland waters, harbours and coastal waters of Australia, up to 200 nautical miles from the Australian or Tasmanian mainland. Normally coverage applies only for boats used solely for private use
Third Party Boat Insurance
Third Party Boat Insurance provides protection in the event of accidental injury or death of another person, or loss or damage to another person's property caused by the boat. With this level of insurance coverage, the policy is restricted to damage or injury that is caused to a third party. There is no cover for damage to the insured boat under this option. Third Party Liability Boat Insurance protects for all the amounts the insured is legally liable to pay, normally up to a limit of $10 million.
Comprehensive Boat Insurance
Comprehensive Boat Insurance protects against the cost of accidental damage to, or theft of, a boat. It also includes Third Party Liability Boat Insurance. Comprehensive Boat Insurance to protect against accidental loss or damage is similar in scope to comprehensive motor vehicle coverage and covers for loss of or damage to the boat caused by an event of accidental loss or damage, fire, theft or attempted theft, malicious damage or storm damage.
Comprehensive coverage can protect against stranding and capsizing, damage sustained while loading or unloading the boat, as well as collision with other vessels, jetties, submerged objects or motor vehicles. The insured vessel is also covered while in transit, if the boat is designed to be transported on its own trailer, or in inland waters, within 200 nautical miles off the Australian coastline, or idle. Full salvage and recovery expenses may be included over and above the sum insured.
Optional Extras on Comprehensive Boat Insurance Policies
Comprehensive watercraft insurance policies from different companies can provide a variety of optional extras and care should be taken to choose those that are suitable. Options can include emergency towing, cover for an outboard or auxiliary motor even if it is not fitted with a safety device and it falls over the side, Waterskier's Liability and Racing Risk (Yachts and Sailing Boats only). Policies can be extended to allow the boat to be involved in commercial activities. Policies may offer up to 60% discount on the premium if the boat is laid up.
Policy options should be chosen if they offer appropriate equipment, accessories and contents cover for the particular situation. Accessories include boat covers and canopies, anchors, portable fuel tanks, batteries, paddles, oars and similar items and safety equipment required by law. Equipment includes depth sounders, navigation equipment, marine radios/transceivers, fish finders and similar items. Contents include portable household goods, clothing, appliances, fishing and diving gear, portable refrigerators, microwave ovens, televisions, glassware, crockery, cutlery and cooking utensils.
Always Look for Insurance Policy Discounts
Policy discounts may be available for people who are members of various associations, no-claim discounts are often available and most companies also offer discounts for people who have more than one insurance policy with them.
Jo Jackson - Jo is an Australian writer with an MBA and a B.Sc.(Hons) in botany. She has wanted to write since she first discovered books and currently ...
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