How to insure a boat? What does it cover?

Anyone who has a speedboat knows the investment they made to acquire this good and, therefore, knows that they need to protect their assets. And this need also applies to those who own boats , yachts and sailboats . The best alternative to protect your assets and those you love is nautical insurance , the name given to boat insurance and which has coverage throughout the national territory.

Unfortunately, only a small portion of Brazilian vessels have nautical insurance , either because the vessel owner is unaware of this insurance category or, even, because he believes that, as the vessel is used less, the chances of an accident are lower – unlike the automobile, which is used daily. However, it is worth remembering that the vessel does not always need to be “in use” for an accident to occur – a storm can already cause damage that throws away the owner’s investment of years.

Among the most common accidents that occur with vessels , shipwrecks stand out , which generally occur due to the pilot’s incompetence, lack of maintenance or bad weather. Next comes the recording of fire principles, which are usually caused by the misuse of electronic equipment on board. Also quite common are engine problems , and partial breakdowns caused by collisions with sandbanks, slabs, rocks and other vessels.

Just like car insurance, for example, nautical insurance protects the vessel and passengers and can be contracted to protect leisure boats, including speedboats , yachts , sailboats and also jet skis . Nautical  insurance allows you to sail with peace of mind, feeling fully protected and enjoying the rides.

As since April 2016 the Mandatory Insurance for Vessels (DPEM) , established by Law nº 8.374/1991, is no longer charged in inspections and in the issuance of the Term of Inspection or Certificate of Regularization of the boat, the contracting of a private nautical insurance , made directly by the owner , proves to be the best option to ensure more security of the heritage.

How much does Boat Insurance cost ?

Regardless of the nautical vehicle – it can be a speedboat, yacht, sailboat, a small boat or a jet ski – nautical insurance will cost between 0.04% and 2% of the value of the vessel. The variation is due to the vehicle’s accessories, the insured person’s claim history and the place where he sails.

When stipulating the value of a nautical insurance policy, insurers take into account:

  • type and value of the vessel;
  • vessel specifications, such as length, year of construction, propulsion and hull material;
  • the storage location (whether it is located in a marina, garage, etc.);
  • the navigation area .

What does marine insurance cover?

Nautical insurance can be contracted for boats, speedboats, yachts, jet skis, sailboats, and any other type of vessel. As far as coverage goes, marine insurance can cover just about everything from theft to overland transportation. 

In general, insurers offer basic coverage, which may include total or partial loss, 24-hour assistance, robbery or theft and national  navigation perimeter.

Among the possibilities of nautical insurance coverage , we can highlight:

  • robbery or theft of the vessel and/or fixed and/or non-fixed equipment;
  • collision (collision with another obstacle);
  • accidents (removal and placement in the water and/or supplying the vessel);
  • land transport of the vessel;
  • explosions;
  • Civil Liability (RC) of the owner, covering material and bodily damage;
  • DPEM, covering death, permanent disability and medical and supplementary assistance expenses – personal injuries caused to people on board and transported;
  • navigation limit extension;
  • special coverage for participation in competitions. 

The Boat insurance must specify the coverage of the hull , engine and sterndrive , as there are claims in which the collision only affects the sterndrive, for example, and if it does not have coverage, the insurance cannot be used for maintenance.

It is also essential that the contracted nautical insurance has coverage for the removal of wreckage , whether from the insured’s hull or from third-party vessels. This item is important because, if there is a serious accident and the vessel involved sinks, the owner is responsible for removing the wreckage, as required by the Navy. And if the nautical insurance does not cover this removal, the owner may have an extra expense of 20 to 40 thousand reais with this operation.

What does boating insurance not cover?

As with car insurance , for example, there are a number of items and events that are not covered by the insurer , including:

  • alterations in the original characteristics of the vessel;
  • construction defects ;
  • lack of mandatory safety equipment and airworthiness;
  • damage caused by an unauthorized person.

Remember that the type of nautical insurance also depends on the purpose of using the vessel. Those who use their boat to transport passengers or rent need to take out specific insurance for commercial use. Those who participate in competitive activities need to let the insurer know, as they run the risk of not being covered on the day of the event.

Take out nautical insurance and enjoy your boat without fear

Those who choose to take out nautical insurance not only guarantee more peace of mind for their leisure time, but also protect themselves from possible damage . It is important to start negotiating with the insurer knowing the main points you need to pay more attention to, your responsibilities and needs as a vessel owner.

Now you know what to consider when choosing your nautical insurance. 

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