Most house insurance companies carry a huge amount of data about the claims’ history in certain locations.
They can tell you which suburbs, in fact even drilling down to which streets, in a city are most likely to suffer storm damage.
They have a handle on a raft of other things too, such as where homes are more likely to be targeted by burglars.
Car insurance companies have data on the most likely models to be stolen and where from.
And likewise, marine insurance specialists have built up banks of information from claims’ history including the most common types of claims.
That’s why they have conditions in their insurance policies that will, for example, demand that a boat on its trailer be properly secured with a locking mechanism or why it can’t simply be left on the street.
It’s why some insurers won’t provide cover for a vessel riding on a swing mooring.
While specialist marine insurers don’t delineate insurability based on the brand of boat, they certainly do on the types of boats they will insure.
And that’s good news because it means that prices for insurance premiums are not unduly inflated by the frequency of claims being made by virtually uninsurable boats or people.
For example, if someone has had four total boat write-offs, you would have to ask whether the reason lay solely in accidental bad luck or was it due to a failing on the part of the skipper?
Similarly, would you like to be, in effect, subsidising the insurance premium of someone who has been convicted three times of drink driving offences on the water?
Another way to look at it is – would you be happy to lend your vessel and all its inclusions to these people or would you consider it too much of a risk?
Likewise, in years past, older fibreglass boats may have required an inspection and a valuation before being insured, but with improved construction standards, upgraded materials, more in-built safety features and greater engine reliability, this has changed.
Nautilus Marine will now insure production-built fibreglass runabouts with outboard motors up to 30 years old without requiring special inspections.
That’s because statistically, some of the associated risks with owning a boat are now lower.
Lower risk equates to a lower premium.
Of course, it always pays to understand what is and what is not covered under your policy, particularly if you are new to boating.
Purchase an older imported American sterndrive boat and you’ll need to understand the idiosyncrasies of owning one.
You need to appreciate that the exhaust manifolds and risers on the engine may well be suffering from corrosion and that they are expensive to replace.
In a related vein, seasoned sterndrive owners know they should raise the cushioned engine cover as well as the seat covers, to ensure everything dries out properly to lessen the possibility of mould growing.
Should those risers rust out or should mould grow in your vessel, their remediation won’t be covered under your marine insurance.
They will come under the classification of normal wear and tear.
It therefore makes sense that, if you’re purchasing from a reputable dealer, you request a full rundown on the maintenance required for such a vessel.
As always, what is and what may not be covered will always be decided in accord with the terms of insurance as defined in your insurance policy’s product disclosure statement.
That’s why it is so important to read it thoroughly and to note any special conditions and excesses, which should be explained clearly in your PDS.
If you need further information, you can contact Nautilus Marine Insurance on 1300 780 533 for any boat insurance requirements.
