You can't take delivery of a boat until it is insured in your name, so insurance should not be left to handover day. What the policy covers is shaped by where the boat will be used, how and by whom.
The two main parts of a policy
Boat insurance usually has two parts. The first is hull and machinery cover, for damage to the boat itself from events such as collision, grounding, fire, storm or theft. The second is third-party liability, for damage done to another person, another boat or the environment. A fire that starts on your boat and spreads to the one next door falls under the second part. Some countries and marinas insist on a certain level of liability cover.
When you read a policy, look at what is left out as closely as at what is covered. Ordinary wear and damage caused by lack of maintenance are excluded from most policies. The people on board, the crew, the tender and personal belongings may appear as separate lines.
Insured value and excess
The insured value is based on the value of the boat. In some policies that value is agreed at the outset, and in others the market value at the time of the loss applies. The difference is felt most when the boat is a total loss.
The figure is written at the boat's true value and reviewed against its current value at each renewal. If you carry on with an old figure on a boat whose value has changed, you may meet an unexpected gap when you claim.
The excess is the part of a loss you bear yourself, and it directly affects the premium. When you compare policies, look past the premium at the insured value, the excess, the cover and the exclusions together.
Where and how you will use the boat
Every policy is valid within a stated cruising area. If you are going outside it, for example to bring the boat from a distant port, have the route added to the policy beforehand. If the boat summers in the Aegean or on the south coast and winters somewhere else, the passage between the two must also lie inside that area.
The berth and the wintering place go into the policy as they really are. If the boat will winter on hardstanding, you tell the insurer where, and for how long it will be ashore. Once the insurer has agreed, most policies keep the cover running through the months ashore and during the haul-out and relaunch. Some have separate conditions for the winter, and if you intend to go to sea then you may have to tell the insurer first.
The kind of use matters too. Private use and chartering call for different cover. Some policies require the person running the boat to hold a certificate of competence, or require a captain above a certain length. If you mean to lend the boat to a friend, ask beforehand whether the policy allows it.
The boat's age and history
On older boats, insurers may ask for a current survey report. Certain covers, such as machinery breakdown or electronic equipment, may be restricted on these boats. The claims history of the boat and of its owner also affects the quotation. So ask at the buying stage what cover can be had for the boat you have in mind.
Insurance during the purchase
The policy is issued in the new owner's name before handover. If the registration is not yet complete, ask in advance which documents the insurer will accept. If the boat is to make a delivery passage, the route is written into the policy. The seller's policy is usually cancelled on the sale, and yours must already be running at the moment of handover. We allow for the insurer's timetable when we plan the handover date.
The policy states how soon you must report a loss. You decide with your insurer which policy suits you.
A policy built around the way the boat is really used makes handover day easier too.
