Boat hull insurance: Money from the insurance company if the engine breaks down

Although the figures are falling, engine problems were once again the most common cause of marine rescues for sailors and motor boaters in 2019. This is according to the statistics on the causes of accidents, which can be found in the current issue of YACHT (issue 3/2020).

The problem has now also been recognised by Germany's largest boat insurance provider. More than 250 claims to boat engines have been reported to the Hamburg-based policy broker. Pantaenius were last reported per year. Therefore, a supplement called "motor protection plus" is now to be included in the Comprehensive insurance protect owners more comprehensively than before against the financial consequences of the most important causes of damage. The additional offer also covers damage caused by operating errors, including incorrect refuelling.

Holger Flindt, head of the Pantaenius claims department, explains:

"Motor dealers are only liable for material and manufacturing defects that already existed, at least in part, at the time of purchase. However, the statutory warranty period ends after 24 months. As a voluntary service provided by the manufacturer, the warranty also generally ends after a maximum of five years. Outside the warranty period or the guarantee period, the owner is not entitled to a replacement, even in the event of material or manufacturing defects. Our new Motor Protection Plus product not only offers a remedy here, but also goes well beyond the services that boat owners can claim under warranty or guarantee."

The Pantaenius Motor Protection Plus supplementary cover is available for boats and yachts up to ten years old and covers damage caused by material, manufacturing or design defects as well as self-inflicted damage caused by operating errors. In these cases, the owner is neither entitled to repairs or rectification by the dealer nor to warranty claims against the manufacturer.

The insurance also covers damage to the machinery and tanks caused by incorrect refuelling with water or fuel. Flindt:

"Even if many skippers are convinced that such a mistake could never happen to them, we recorded around 30 cases of misfuelling last year. Motor and sailing boat owners are equally affected by this."

However, the additional cover from Pantaenius is not free of charge. The machinery damage extension, for example, costs 180 euros per year for a 36-foot large series sailing yacht. And the insurance broker does not sell such a product exclusively either. Some other policy brokers and intermediaries offer similar extensions for boat engines, some of which are even free of charge in the first few years and - depending on the provider - are also available for boats over ten years old.

Broker Andreas Medicus, Managing Director of Hamburg Yacht Insurance Schomacker, says:

"All-risk insurance should also be taken out for the engine. This really does cover almost all eventualities - including incorrect refuelling of a yacht. Diesel in the water tank is often covered by all-risk insurance as part of the hull conditions, but water in the diesel tank affects the machinery, which is what the machinery damage cover is for."

Medicus points out that machinery damage cover has been included in Hamburger Yacht-Versicherung's offer for many years and is included in the hull policy for all new yachts for three years at no extra cost. After that, the customer can decide whether they want to continue to have the cover, although this will incur an additional charge.

As with all other boat insurance policies, owners should compare different offers and prices before signing a contract for machinery damage cover. The scope and exclusions can vary greatly from insurer to insurer.

Comprehensive information on boat liability and hull insurance as well as a comparison of providers can be found in the large YACHT online insurance guide.