Insurance: What is now coming to light

The sailing season is drawing to a close and in the coming days and weeks yachts everywhere will be craned and taken into winter storage. Some damage, for example from grounding, is only now becoming visible. Will the insurance still cover this? And: Should even damage that appears minor at first glance be reported to the insurance company?

As a general rule, a yacht owner must report any damage to their hull insurance as soon as they become aware of it. This may well not be the case until the boat is in winter storage, because a grounding that occurred during the season may not actually have been noticed.

And even damage that appears minor at first glance should be reported to the insurer as a precaution. Andreas Medicus from the Hamburg Yacht Insurance Schomacker explains why: "A lot of things are not initially recognised as relevant hull damage after the crane has been removed. However, the true extent of the damage often becomes apparent in the spring, when the actual repair work begins. By then, however, it may be too late to report the damage in accordance with the contract."

An insured yacht owner need not fear any disadvantages from a precautionary damage report. "A precautionary report, which can of course be withdrawn if the damage turns out to be smaller than expected, will not result in the loss of the no-claims bonus or the excess. Rather, the report ensures that the comprehensive insurer is informed and can react accordingly if necessary," says Medicus.

The insurance broker adds: "It is also often advisable to inform your own comprehensive insurer in the event of damage caused by third parties. Because if there is stress with the person who caused the damage, they are the experts who can help. In an emergency, the damage can also initially be settled via your own boat hull insurance. The insurer then takes recourse against the party responsible and, if successful, pays back the excess and any downgrading of the no-claims bonus."

More information on the correct behaviour in the event of damage can be found in the large YACHT online insurance special. There, yacht owners can also check with several providers which Terms and conditions you can insure your boat.