Third Party Boat Insurance

[Wandering Star]

Has anyone with 3rd party only boat insurance ever had a claim made against them? Or has anyone ever made a claim against another boat owner who only had 3rd party cover?

I’m tempted to insure my next boat with 3rd party insurance because filling in the proposal form is far less faff (no survey required) and my own boat value will by necessity be under £10k so in a worst case scenario it wouldn’t bankrupt me if I wrecked her, but obviously, were I to crash into a super yacht or the QE2 through my fault, I’d like to think I was covered for any big repair bill claim.

So my question is do the 3rd party policies pay out and which ones? Anyone with real claims experience? Which companies to trust?

 

[lustyd]

Is the quote cheap enough to make it worthwhile? I think I only pay about £300 a year. On my old boat GJW let me self certify instead of a survey too, which was just a case of ticking boxes to say I was happy with the condition of various items.

 

[Wandering Star]

Oh, that’s interesting, I’ll take a look at GJW. If I could self certify that would be great. I’d certainly far rather have a comprehensive boat policy.

 

[Stingo]

Check that the policy also covers wreck removal for both your vessel and the other party's

 

[Wandering Star]

Oh, that’s interesting, I’ll take a look at GJW. If I could self certify that would be great. I’d certainly far rather have a comprehensive boat policy.

Oh, that brilliant! The boat I’m after (should know on Monday) has a 2018 survey report which GJW will accept. Their quote for £10,800 of cover is £280. Easy and affordable!

 

[oldharry]

Watch out for the small print on those self survey policies: they will always contain a clause along the lines that the owner will take 'all reasonable steps' to ensure the vessel is, and remains in, a seaworthy condition. I would hope we all do that anyway: but it does mean the in the case of a claim the Insurers will send in their surveyor with the specific brief of establishing the vessel's seaworthiness. Unless its already sunk in deep water of course....!

So as a DIY amateur, what steps can I take to ensure I havent missed anything? What is 'reasonable'? An expert opinion from a surveyor....?

A cheaper option would be to ask a boatbuilder to inspect your boat for you, and give a written 'opinion' report. But unless you can prove a high level of competence in boat management and care, you are on thin ice with this clause!

 

[johnalison]

I think that following the rule to only insure what you can’t afford to lose is a sound one in principle. On average, over the course of time you will be better off from not having to pay management fees and cover the cost of people who are less careful than yourself. I’m not sure what the limit for coverage would be. £10,000 sounds a bit painful, even though it’s maybe half the cost of a car to some. I believe that our third party liability is limited but some convention or other (Warsaw?) that relates it to our tonnage, but even with that, causing a ship to founder might stretch the finances somewhat.

 

[DownWest]

Pondering this right now. If I ask my local Ins outfit, they require a survey (not cheap here.. ) The boat is DIY and effectivly worth nothing in terms of insurance. Not fussed about that, but I must insure it for 3rd party . Last time I did this on my little faering, I got charged €200 for a quick survey and the Ins charged about €50. OK, but that was 16 yrs ago. Then the Ins Co jacked it up yearly until at €250 for a little dinghy I told them to stuff it in 2018.
So, is there a UK outfit that will do third party on a home built without a survey and reg in France?

 

[scottie]

I doubt it

 

[PhillM]

I went with Pantanatious 3rd party. I have been fully comp with my prior boat but this one is too low value for them. I made a claim a few years ago and they were fantastic (under my fully comp policy). So, by all means, save the money if you can stand the loss of the boat, but I would say to use a decent insurer with a good reputation.

 

[Birdseye]

Watch out for the small print on those self survey policies: they will always contain a clause along the lines that the owner will take 'all reasonable steps' to ensure the vessel is, and remains in, a seaworthy condition. I would hope we all do that anyway: but it does mean the in the case of a claim the Insurers will send in their surveyor with the specific brief of establishing the vessel's seaworthiness. Unless its already sunk in deep water of course....!

So as a DIY amateur, what steps can I take to ensure I havent missed anything? What is 'reasonable'? An expert opinion from a surveyor....?

A cheaper option would be to ask a boatbuilder to inspect your boat for you, and give a written 'opinion' report. But unless you can prove a high level of competence in boat management and care, you are on thin ice with this clause!

I believe your last sentence is wrong. Courts expect you to use the skills you have so someone with a background in boat building would be put to a much more serious scrutiny than you would. All you need to do is to be careful, thoughtful and thorough - and to have happily noted down the checks you made.

 

[Tranona]

I think that following the rule to only insure what you can’t afford to lose is a sound one in principle. On average, over the course of time you will be better off from not having to pay management fees and cover the cost of people who are less careful than yourself. I’m not sure what the limit for coverage would be. £10,000 sounds a bit painful, even though it’s maybe half the cost of a car to some. I believe that our third party liability is limited but some convention or other (Warsaw?) that relates it to our tonnage, but even with that, causing a ship to founder might stretch the finances somewhat.

Suspect you are confusing things here. Third party contracts do have limits - but they are very high and unconnected to the sum insured for the boat. The limit of liability for third party claims is clearly stated on the policy. as already suggested check also that it also covers wreck removal and coverage for environmental issues. The sun insured for the boat is the maximum paid out in the event of a total loss and effectively the maximum payable for repairs of any damage or loss. For low value boats you have to make judgement on the value of all risks given the upfront of a survey and any remedial work plus the higher premium against the likelihood of making a claim.

Many people effectively self insure because of the cost against the perceived risk. For example i have never insured my pets as third party is covered by the household policy and over the 40 years of having cats and dogs overall vets bills have always been less than than insurance premiums minus what could have been claimed.

 

[LittleSister]

I bought some cheapo third party only boat insurance some years ago. (Pre-internet, advertised in PBO. I can't remember the exact circumstances that lead me to do so.) It gave me the piece of paper I required, but the policy seemed to be carefully worded to avoid any possibility of the insurer ever having to pay out!