Insurance - again!

[syvictoria]

I know that N&G has been discussed a couple of times here in recent months, but my broker is now offering me an N&G policy at renewal due to the previous one no longer being available. The policy that I'm being offered is this one:

N&G Yacht and Motorboat Insurance Policy

I have a couple of concerns, possibly unfounded.

The 'similar' replacement vessel on total loss clause is far from ideal, but I hope that common sense will prevail should I ever find myself in that very unfortunate position. The anchoring clause seems better than some that I have seen discussed on here.

What I'm potentially unsure about about are two clauses under the "What you are not covered for:" heading on page 13:
• replacing, repairing or renewing a faulty part, faulty design, faulty construction or defective materials.
• failure, fault or breakage of electrical or mechanical equipment.

Are these terms considered normal/acceptable?

TIA!

 

[lustyd]

Why would either of those be covered under insurance? The first would be a warranty claim with the manufacturer and the second is effectively either wear and tear or poor maintenance.

 

[syvictoria]

Why would either of those be covered under insurance? The first would be a warranty claim with the manufacturer and the second is effectively either wear and tear or poor maintenance.

Thank you. It did wonder if I was over thinking things!

 

[lustyd]

Don't get me wrong, it's a good thing to read and understand the document. I think those exclusions are to be expected though and seem a fair addition to protect the insurer. It's possible that if you call them you can protect against those too in exchange for higher premiums, although I can't imagine much value in doing so unless the boat is very new as most faults will have been found and if we're honest a lot of failures aren't entirely unexpected on older boats

 

[Daydream believer]

• replacing, repairing or renewing a faulty part, faulty design, faulty construction or defective materials.

So what happens if a rigging screw breaks & the mast goes over the side? Do they pay for everything, except the rigging screw?

 

[Graham376]

So what happens if a rigging screw breaks & the mast goes over the side? Do they pay for everything, except the rigging screw?

That's the usual case, they cover the consequences of something failing but not the item which failed. Engine packs up, you wind up on the rocks - damage covered but not engine repairs.

 

[Fimacca]

Happy to pay for the screw !!

That just sounds wrong.

 

[lustyd]

So what happens if a rigging screw breaks & the mast goes over the side? Do they pay for everything, except the rigging screw?

Doesn't fit into either category from above unless it's new and has a defect. I assume you're talking about an old, out of warranty one which shows no signs of wear and is a reasonable age. It's not mechanical equipment either so the failure would just be covered under normal bad days at sea coverage That's once you show a recent survey or rigging replacement receipt, of course!

 

[Tranona]

The typical example here would be an internal chainplate that was hidden so it could not be inspected failed and rig was lost. Rig would be replaced or repaired but not the failed chain plate. In the scheme of things it is usually the consequential damage that is the big cost.