BLOG: Fishing boats & insurance woes

OVER the past year I've had a crash course in dealing with insurance companies.

While many of us are covered by an insurance policy for our watercraft, I guarantee that most of you have little understanding of what you’re actually covered for. I know I didn’t have a clue about the full ramifications of my policy. Having a policy doesn't automatically mean you're covered in the event of a mishap. It goes a little further than that.

Here are some tips to look out for when assessing the nature of your policy:

Is the total package of boat, motor, trailer and gear covered while in transit?
It’s easy to get caught out with this one as a good majority of policies cover everything except your gear. Transit cover should also include travel by train or sea, as some fishermen ship their boats to exotic locations to fish, places not accessible by road. "In transit" cover should insure hull, motor (s), masts, spares, rigging and sails, trailer, equipment and accessories, boat tender and personal effects when used or on your boat.

Is there "after accident" care? In the event you are in an accident that will lead to a claim, does the insurance company offer emergency towing and return boat to home/mooring after the repair as an option? Some policies even cover you for emergency accommodation and return to home transportation, so be careful to ask questions regarding this when inquiring about your next policy. Also, reasonable costs of medical evacuation and patient transfer should be covered. If asked for, medical advice and referrals can be included in the policy.

Is your policy for agreed or market value? While this is a basic concept it amazes me how many people assume they are covered by agreed value when they are covered by market value. Usually market value is wholesale value so the payout is substantially lower than you will expect. Replacing your boat with an identical version will probably put you out of pocket.

Does your policy cover you for "like for like" or "new for old"? This one was a major sticking point in a claim I had pending a few months ago. Any sensible person would tell you if your boat was damaged, any repairs made would be covered under your policy – end of story. It’s not quite like that. If you have a "like for like" clause, any repairs made will be only repaired back to the state the boat was in pre-accident – not new. If it gets repaired back to new, you will be asked to pay the difference. It’s a joke. So in the interests of sanity, please ensure you have a new for old clause. If your boat gets repaired, it gets repaired back to new at no charge to the owner.

On the water, is your fishing gear, dive equipment or tools covered in the event of an accident? Unless it is implicitly stated, your gear may not be covered. You can actually increase your limit with these items to around $1,000 per item and $10,000 in total. Considering some of the gear fishos use these days, a few Stellas and Saltigas will see you rack up that figure pretty easy. Personal effects, including personal items belonging to you or your immediate family covering clothing, shoes, waterproof gear, prescription sunglasses and manchester should be covered and can also be increased to around $1,000 for each item and $10,000 in total.

In the case your boat needs to be salvaged, does your policy cover salvage charges/wreck removal costs over and above the sum insured? I have heard of a few cases where costs to salvage a boat were greater than the sum insured and the owner received a large bill in exchange for his water-logged boat.

Obviously some of these examples are rare occurrences, but having insurance is meant to cover you for the unforeseen. Be pro-active and study your policy and make the insurance company accountable. It will pay dividends in the long run.

Has your boat insurance policy left you short?

(Thanks to Warren Murphy from Regent Insurance Brokers for a few inside tips)