It happens almost every winter: Fires in the boat shed or on the outdoor storage area! In recent months, numerous yachts have burnt down in Neustadt, Travemünde and Roermond, among other places.
Such cases are often arson, but occasionally a technical defect triggers a flaming inferno. The worst thing is that the damage is rarely limited to one or two ships, as the fire spreads quickly from boat to boat.
In the end, numerous ships are regularly affected. Even boats that are far away from the source of the fire are usually at least heavily sooted and have to be extensively cleaned. Yachts that were directly exposed to the flames, on the other hand, are all too often total losses afterwards.
For owners affected in this way, the loss of their ship is often a shock. At least those who have hull insurance for their ship are lucky. Nevertheless, they are also concerned about whether the insurance company will provide enough money to buy a boat of at least the same value. Especially if their own boat was already a bit old.
And so it is hardly surprising that the Hamburg Yacht Insurance Schomackera broker for boat liability and hull policies, recently reported masses of unsettled customers. Looking back on the last boot trade fair in Düsseldorf, the company writes: "Rarely has a trade fair been so characterised by one recurring question: the fixed rate." Hardly anyone believes it is possible for yacht insurers to guarantee a fixed rate, i.e. the sum insured, which in case of doubt was fixed many years ago, for the entire term of the contract.
The small print is crucial
In fact, such concerns are not entirely unjustified. After all, not all providers sell their customers a fixed rate that cannot be disputed by the insurance company in the event of a claim. The small print of the insurance conditions separates the wheat from the chaff. Only if the fixed premium is formulated as genuine replacement value insurance will it fulfil its promise in the event of a claim.
At the largest boat insurance broker, Hamburg-based Pantaenius GmbH & Co. KGthe inventor of the fixed valuation in the yachting sector, the terms and conditions state: "The insured value is the new value (replacement value for similar new items). The amount of this value is fixed as an assessment on the total amount of the sum insured shown in the policy."
The passage from the provider is very similar FirmenichThe sum insured stated in the policy is deemed to be a fixed amount agreed between the policyholder and the insurer. The amount may only be changed in agreement with the policyholder. The insured value is the new value (replacement value for similar, new items)."
And boat insurance brokers Yacht pool from Ottobrunn expressly advises that when choosing an insurer, you should ask whether the fixed rate offered is unlimited in time, i.e. whether it applies until you want a different insurance value yourself.
Otherwise, the insurer does not have to feel bound by the fixed rate. The term itself is neither protected nor universally defined anywhere.
And so it happens that some insurers soften their fixed valuation over the years and, in the event of a total loss, only reimburse the current value of the yacht - fixed valuation or not. They then usually refer to the Insurance Contract Act, which prohibits overinsurance. According to Hamburg-based yacht insurance company Schomacker, caution should therefore always be exercised when simply using the term "valuation" or "fixed valuation" in the insurance conditions.
The sum insured must be realistic
Nevertheless, Schomacker Managing Director Andreas Medicus emphasises that setting a realistic sum insured is a top priority when taking out comprehensive insurance. "This is usually the purchase price plus the equipment and any personal effects. For older yachts, the sum insured should be chosen in such a way that it is possible to replace the yacht with an equivalent one."
He continues: "Ships that have been insured for a long time often have a sum insured that cannot currently be obtained on the market. Here it is important to consider whether it makes sense to reduce the sum insured. However, in the event of a claim, we will always pay out the agreed sum," says Medicus.
In fact, one of the broker's clients, who lost his ship in the fire at the Ancora Marina in Neustadt in December, received the full sum insured within a short period of time, even though the amount was significantly higher than the current market value of the older ship. "However, we hear of many insurance cases where there were considerable discussions with the insurer in the event of a total loss," says Medicus.
In addition to the aforementioned providers Hamburger Yachtversicherung, Pantaenius, Firmenich and Yacht-Pool, other renowned policy brokers and intermediaries also offer an incontestable fixed rate. With the free YACHT online insurance comparison you can obtain and compare offers from several insurers at the click of a mouse.
