Common Boat Insurance Exclusions You Need to Know.
If you own a boat, you already know it requires insurance to protect you and your vessel against unexpected events. But did you know that boat insurance policies usually have exclusions that you need to know to ensure you are well protected? Here are some common boat insurance exclusions.
Wear and Tear
Boat insurance policies typically exclude coverage for damage caused by regular wear and tear. If your boat sustains damage from regular use, your insurance may not cover the repair costs. To avoid this exclusion, make sure to keep your boat in good condition by performing regular maintenance.
Tip. Saltwater corrosion is a typical boat deterioration usually not covered by boat insurance. Protect your boat from corrosion and rust by regularly removing minerals that can damage your vessel.
Failure to Maintain
Insurance policies may exclude damage caused by your failure to maintain your boat properly. To avoid this exclusion, keep up with routine maintenance tasks and have your boat inspected regularly.
Tip. Basic boat insurance policies don’t cover any machinery or parts that need repair or replacement due to deterioration, lack of maintenance, improper use, or mechanical and production defects. However, your insurance may still cover machinery if it is damaged by a covered peril, like a collision or storm.
Consequential Losses
Consequential losses are damages that result from a covered loss. For example, if your boat sinks and you lose all of your fishing gear, your insurance policy may cover the cost of the boat but not the cost of replacing your gear. Be sure to read your policy carefully to understand the extent of coverage offered for consequential losses.
Infestations and Vermins
Most boat insurance policies exclude insects, animals, and mold. For example, you won’t be covered for damages caused by vermins like raccoons, carpenter ants, or barnacles. This exclusion may also include boat damage caused by a mold infestation.
Tip. You’ll want to regularly clean, drain, and dry your boat equipment after use. Getting rid of excess water and moisture helps deter marine infestations and mold. You’ll also want to clean up spills and messes to dissuade animals and insects from making their home on your boat.
Navigation Limits
Boat Insurance policies also include details regarding areas where you take your boat. This really depends on your insurance provider and can include distances from the shore or, in some cases, outline longitude and latitude limits. If you take your boat outside your specific navigation limits, you are excluded from insurance coverage.
Professional Racing
Most boat insurance policies exclude coverage for damage while racing for money or conducting speed tests. However, boat insurance typically covers participation in racing for pleasure, such as a club sailing regatta and even larger events like Chester Race Week.
Improper storage and transportation
As expected, most basic boat insurance policies will protect against fire, vandalism, theft, and winter storms in the off-season. This protects your boat from serious financial strain in the case of an incident. However, it’s essential to store and transport your boat in the off-season correctly. Most insurance policies cover your boat on-land but don’t put yourself at risk by failing to take appropriate measures and precautions to keep it safe. Check your policy wording for the mandatory “Out-of-Water” layup period, typically with specific dates noted.
Understanding the exclusions in your boat insurance policy is just as important as understanding what is covered. Read your policy carefully and speak with your insurance broker if you have any questions. At Bauld Insurance, we are here to help you navigate the complex world of boat insurance and find coverages that meet your needs. Visit our boat insurance page and contact us to learn more.
Additional Resources:
