This section provides cover for loss or damage to the insured’s vessel and equipment .
Some policies cover such loss or damage only when caused by a named “peril’ whereas others cover loss or damage caused by any external accidental means which are not specifically excluded under the “Exclusions” to the policy.
Perils covered commonly include:
Stress of weather
Stranding or sinking
Collision or contact
Explosion or lightning
Malicious act or vandalism
Accidents in loading and unloading
Transit by road or ferry.
A number of the above perils may be limited in cope by certain proviso or limits or conditions.
For example, in the case of collision concerning speedboats, one often finds a limitation on the amount of damage caused to the rudder, propeller/s, strut or shaft, motors, electric or electronic machinery, batteries and their connections caused by impact with submerged objects.
Similarly theft of an outboard engine could be subject to a proviso that the engine is secured to the craft or to the tender with an additional antitheft device. Some policies may limit theft of inboard machinery and equipment solely following forcible and violent entry into the locked cabin, hatch or locker or into the boat’s place of storage ashore.
Therefore it is important to enquire properly about the cover provided and the exclusions to the cover.
This avoids unpleasant surprises at time of claim.
Under the Property Damage section, there are also additional benefits for which the policyholder may be able to claim. These may also vary from one company to the other, but the most common are:
Sighting costs – the costs incurred for inspecting the underwater part of a stranded craft. This will also be covered, up to a certain limit, even if no damage is actually found following inspection.
Salvage charges – the expenses incurred in order to safeguard the craft so as to reduce further losses.
In addition, personal effects are sometimes considered to be part of the property being insured. Thus, personal effects that belong to the insured or to family members will be covered up to a certain limit. Such personal effects include clothing and sports equipment, but it may exclude money, jewellery or other valuable papers or documents.
The property damage cover under a yacht and pleasure craft policy is subject to particular conditions. One common condition relates to when the insured craft is in transit. This condition emphasises the fact that whilst in transit, the craft must be carried on a trailer and towed by a suitable vehicle. If such condition is breached, the insurer may refuse to pay a claim in case an unfortunate event occurs. Also, some policies offer cover for the boat trailer but this might not be so common.
There are also specific exclusions which apply under this section, the most common being: