In the past few year’s the topic of insurance has often been around the steep increase in premiums, particularly for Business, Home and Motor policies.
Whilst there have been increases on some Boat policies, mainly for Moored Vessels, premiums for most Trailered Boats have generally remainder static and below the rate of inflation.
There are many factors that determine premium rates. The obvious and most crucial one, is the cost of claims.
Boat insurance is no different to other types of insurance. In simple terms it is a pool of money that policyholders contribute to and is used to cover losses some may experience. Therefore, it becomes a collective responsibility on all policy holders to safeguard their vessel and reduce risks. Not only does this benefit the policy holder, if everyone plays their part, it will help keep claims costs and ultimately everyone’s premiums down.
Based on a broad cross section on the type of claims we see, here are a few simple tips on some of the things you can do to lower your risk of a claim:-
Fire
Fire Extinguishers – Inboard fires are one of the most common reasons boaters are forced to abandon ship (other than the obvious one of having your vessel sink). When was the last time your extinguisher was checked? Is it current and going to work if you have a fire onboard?
Trailers
A lot of attention is focussed toward water safety, however boating starts when you leave home with the boat in tow. Trailers need regular checks and maintenance.
While the boat is on the water also take time to check the trailer frame for wear and tear, cracks at bends, joints, springs and welded areas. Inspect the rollers to make sure they are rotating freely.
Tyres should have plenty of tread and be in good condition without any cracking. Make sure the wheel nuts are properly tightened and check tyre pressure. Wheel bearings should be in good condition and well packed with lubricating grease.
Towing hitch and safety chains, D-shackle should have a break load limit rated at least 1.5 times greater than the total trailer weight. A properly loaded and balanced trailer is essential. The centre of gravity should be as low as possible with weight distributed evenly or preferably 60% of the boats weight on the front part of the trailer.
The boat must be properly secured to the trailer. The winch/cable strap should be tight. The stern should be secured with ratchet type tie downs.
Rinsing and cleaning your trailer with Salt-Away can save maintenance costs in the long run.
Theft and Burglary
Claims involving criminal activity continue to rise. Not only are entire rigs stolen but electronic equipment and auxiliary motors. Disabling Trailers with anti-theft coupling devices or wheel clamps. Small motors and accessories should be kept in a locked building or boot of your car. Putting permanent identification on the boat and equipment. GPS trackers are also becoming less expensive.
Collision
Some of the worst claims are with boats hitting rocks and other submerged objects. Just like a car, the faster a boat is travelling, the bigger the mess. After heavy rains rivers will carry debris out to the ocean. Be aware of this and if travelling through waters where there is evidence of logs and timber floating about, not only stay vigilant, but also slow down.
Sinkings or water immersion
A lot of damage and in some cases sinkings happen from water coming from above. So regularly check seals around windows and hatches, also scuppers which can block up. If the boat is stored outside ensure the bung is left open and regularly checked as it can block and result in damage from rainfall.
Canvas storm covers age and lose their integrity. They need to be checked to ensure they are not likely to split next time there is heavy rain or wind
The Nautical concept was to provide boat owners with value for money – wide cover, competitive premiums, and prompt claim response times.
Nautical, who is now the largest arranger of boat insurance in New Zealand, has a large customer base mainly in the South Island and Wellington area. This sizeable client base enabled Nautical to enter a long-standing marketing arrangement with Royal and Sun Alliance (now Vero Insurance), obtaining very favourable premiums and wide policy coverage. When a claim occurs, we work at the sharp end to arrange salvage and recovery, organise assessors and provide immediate advice on where to go and what to do.
All Nautical policies have wide assistance, salvage, recovery and loss-reduction covers which enable you to immediately get your damaged boat to a repairer or place of safety. All reasonable costs are covered by the policy.
