As soon as the first opportunity arises, prepare an accident report and send it to the insurance company. The broker or insurance company will provide the relevant forms, often as an Internet download. Then wait for the repair order.
Under no circumstances should you initiate repairs yourself without the insurance company's approval, unless it is clearly intended to minimise the damage. In the case of more serious damage, the insurance company will commission an expert to assess the damage. Based on his work, it will ultimately be determined how much money the owner can expect to receive from his insurance company.
If there is a dispute about the amount of damage: "Above all, don't order any repairs before clarification has been reached," advises Hamburg lawyer and water sports expert Dr Heyko Wychodil. Even if this drags out the whole process.
If you act prematurely, you risk losing your insurance cover
Some insurance companies not only have the amount of damage determined in an expert report, they also ensure that the damage is repaired professionally and, if desired, support the customer in finding a suitable repair company.
Owners' concerns that the insurance company might have the work carried out by a low-cost provider are unfounded. The insurers themselves know all too well that word would spread quickly. On the contrary, the companies live from their good reputation in the sailing community.
Lawyer Wychodil also confirms: "The owner should normally be able to assume that the insurance company will commission qualified specialist companies to repair the damage. After all, it is also in their interest to have a properly repaired ship in their customer portfolio afterwards."
If an expert can be dispensed with in the event of minor damage, the owner must obtain a cost estimate himself and then submit it to the insurance company.
If the boat is finally repaired by a repair company and the actual costs ultimately differ significantly from the initial estimate, you should also contact the insurance company immediately. This also applies if the company announces higher costs in the meantime. In this case, have the work stopped immediately and consult the insurer first. In case of doubt, the insurer will reassess the amount of damage.
How much money flows also depends on the small print
However, the actual amount of compensation depends not only on an expert opinion or a cost estimate - the small print in the insurance policy is decisive. There are sometimes serious differences between time and replacement value compensation or the so-called fixed rate. You can find out what to look out for in the contract here.
With a good replacement value indemnity, the insured person receives new equipment or even a new ship without any ifs and buts. What's more, it also covers customisation expenses. This means that if a damaged or stolen item of equipment is no longer available on the market, meaning that a similar part has to be purchased, but which entails structural changes to the ship, for example, the costs for this are also covered.
This can be the case, for example, with a stolen GPS chart plotter. Older devices required little space due to their smaller monitors, whereas comparable instruments today are much larger. It may therefore be necessary to cut a larger recess in the GRP or to prepare a completely new space for the installation of the device.
Even undamaged parts are replaced. Example: One of an older pair of genoa winches is destroyed by an insured risk. Both winches are then replaced.
So the difference lies in the details. A precise comparison of insurance offers is a lot of work, but it may pay off in the end. If you want to order quotes from over 20 providers at the click of a mouse and compare them at home, you can access our free quote enquiry here.
Click here for the checklists: Back to damage prevention
What to do after a burglary? Back to damage minimisation
What to do after a collision? Back to overview
What to do after a serious accident?
Pascal Schürmann
Editor YACHT
