Boat Insurance UK
Marinablu International Ltd
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Pleasure Boat Insurance

boat insurance uk for your sailing yachtThis is yet another important aspect of your pleasure boat insurance policy and perhaps one of the least understood, until its too late. Sadly many pleasure boat owners find out to their cost that the marine boat insurance policy that they bought on the cheap, does not provide the level of compensation they first thought when the worst happens, and they have to make a claim.

In simple terms there are two types of settlement, namely an agreed value policy or a market value policy, both of which are very different and with very different premiums to match. Which one is most suitable for you will depend on the type and value of the boat you are buying, and whether it is financed with a marine mortgage or a European lease. So how do you decide which is best for you and your boat - let's have a look at each in turn.

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Small Boat Insurance  -  Agreed Value Policy

The agreed value boat insurance policy in the UK is a traditional indemnity based contract and one which essentially leaves you in the same position as prior to the loss. In other words the contract or policy is based on the price paid for the boat, which has generally been confirmed by a boat survey prior to purchase. The survey valuation then becomes the agreed value in the insurance policy. So in the event of loss, the insurer will pay out this amount in full, and will not make deductions for any depreciation, inflation, or currency fluctuation unless specifically mentioned in the policy. Certain items may be identified as excluded such as wear and tear on machinery, masts, spars and rigging. If your boat is less than two years old, some policies will provide a new for old value, where the boat will be replaced with a brand new vessel irrespective of any increase in the list price. So if you boat is new or almost new this is well worth considering.

The policy will suit you if you like to know exactly how much will be paid out in the event of loss, but of course this will come at a price, which is reflected in a higher premium. Nevertheless, for higher value boats, this is almost certainly the better type of policy to consider.

Motor Boat Insurance  - Market Value Policy

In contrast to the agreed value, a market value policy has no agreed value, and the value of the boat is not established until loss. Once a claim has been received by the insurer, an independent yacht surveyor is often appointed in order to establish a value for the boat, given its age, use, wear and tear etc. The benefit of this type of boat insurance policy in the UK is that it allows you as the boat owner to set your own value for the policy. However you need to be careful. Whilst you can set a low value and therefore pay a low premium, if this is considered too low by the insurer they will make an adjustment accordingly. In general terms boat owners choose a market value boat insurance policy in the UK where the boat is relatively old, or of lower value, as this reduces the annual premium payable, and therefore can provide cheap boat insurance cover.

Finally, always remember with the premium on your policy that this will always indicate the level of excess you are prepared to pay. Just as in car insurance you can agree to a higher or lower excess which will in turn reduce or increase your annual premium. But always remember, that if you do make a claim, then you will have to pay the excess, so just bear this in mind when considering all the options.

Now I hope the previous few pages have given you a better understanding of what to look for when choosing your boat insurance in the UK. Remember, a cheap boat insurance policy is not always the best. If you would like a quote, please just click on next page link.

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Marinablu International Ltd is an Introducer Appointed Representative of  Pantaenius UK Ltd who are authorised and regulated by the Financial Services Authority (FSA)  - boat insurance uk