Q. What should I look for?
A. Each boat and its owners’ sailing patterns will be different, and only you can decide if wider cover is important to you. It is essential though, to understand what is being offered to you, before taking an informed decision.
The two main options are:
- Comprehensive Cover - your boat will be covered against accidental damage, theft, fire and malicious damage with comprehensive cover.
- Third Party Liability - it would be unwise to go afloat without liability insurance, which will cover you if you cause damage to another boat or worse still cause injury.
Q. Why do I need third party cover?
A. Third Party Liability is mandatory if you are to sail in Malta and, you should not consider sailing without this cover as a minimum. A policy providing third party liability should cover you if you were to cause damage to property or injury to another person with your yacht. The industry standard provides a limit of € 235,000 and should be sufficient to sail in the Maltese waters.
Q. Should I expect a standard policy to cover me while I’m not sailing i.e. when my boat is ashore?
A.Comprehensive policies should cover your boat against accidental damage, theft, fire and vandalism, whether in use or not. There may be restrictions on where your yacht should be moored, and when it should be taken ashore. These details should be listed on your policy. Third party liability whilst in transit will be excluded, as this will be covered by the vehicle’s insurance.
Q. Am I covered for 12 months of the year?
A. Some policies will stipulate that your yacht is laid-up ashore for certain times of the year. Check your policy carefully and find out what cover would be in place if you were unable to lift the boat from the water or if you wanted to launch the boat prior to the end of the laid up period.
Q. Does it matter who is in charge of my boat?
A. The majority of yacht insurance policies will allow anyone to sail your boat with your permission, whilst you are on board, however it would be prudent to check this first. However if you are receiving money in return, for example if the boat is being hired or chartered this may invalidate the policy.
Q. Will I be covered to sail abroad?
A.You should carefully check that the cruising range is adequate for you as you will not be covered if a claim were to occur outside the area agreed upon. Elmo Marine Insurnace policies, for example, cover Maltese and Sicilian waters automatically.
Q. Will I need to obtain a survey for my boat?
A. Most insurance companies will require a survey for any boat aged 5 years or more, and then again, every 5 years or so. Some yachts may require a survey earlier than this if they have sustained serious damage, if they are wooden, or if they have been self-built.
Q. What should I do in the event of a claim?
A. You should always submit your claim as soon as possible after an accident. After all, the faster you make the claim, the faster you can get back on the water. Your insurer may ask to inspect any damaged equipment, before authorising its replacement or send a loss adjuster or surveyor to assess the damage.
Q. How fast are claims processed?
A. This will depend on which yacht insurance company you use and their speed of response. It can also depend how quickly your repairer can provide a quotation and then carry out the necessary repairs. It is Elmo Insurance’s intention to respond to you within two working days, advising how to proceed, so you will know exactly where you stand, and how soon you can expect to be back on the water.