DO YOU KNOW YOUR IN­SUR­ANCE?

Boating NZ - - Reflections -

It may seem like a sim­ple ques­tion, but ask your­self - do you truly know your in­sur­ance?

When it comes to in­sur­ance, it is im­por­tant to note that there is no such thing as a one size fits all pol­icy which is why you should learn all you can about your in­surer and the cover they pro­vide you with. The most cru­cial as­pect to con­sider is the value of your in­sur­ance and to take into ac­count that the cheap­est pol­icy is not nec­es­sar­ily the best. One of the big things that fall un­der this is if your in­surer will pay you out mar­ket price or of­fer you a re­place­ment ves­sel in the case of a to­tal loss or if they are one of the few that of­fer an agreed fixed value pol­icy. Pan­tae­nius falls into this cat­e­gory which means in the event of a to­tal loss we will pay you out the agreed in­sured price on your pol­icy with no ques­tions asked and no de­duc­tions on the pay­out.

So what hap­pens if you aren’t on an agreed fixed value pol­icy?

Well you might just be pay­ing a premium on a value you will never re­ceive. If you take that into con­sid­er­a­tion you quickly re­alise that’s a lot of money which could be go­ing else­where.

What if it’s not a to­tal loss?

Again, this varies greatly from in­surer to in­surer so it’s im­por­tant to read the fine print of your pol­icy. At Pan­tae­nius you will ben­e­fit from items like capped de­pre­ci­a­tion. Fur­ther­more, should for ex­am­ple, light­ning fry your elec­tron­ics we give you back a min­i­mum of 70% for the gear and take re­spon­si­bil­ity for all the labour costs needed for in­stal­la­tion. You will have a hard time find­ing some­one that of­fers that, it’s where the strength of the global leader in yacht in­sur­ance re­ally comes into play.

Other con­sid­er­a­tions

Well what does your pol­icy even cover? For all Pan­tae­nius in­sured ves­sels an all-risk pol­icy ap­plies, mean­ing that un­like other in­sur­ers who only cover you for what they state, we cover you for ev­ery­thing ex­cept for our small list of ex­clu­sions. If it’s not on that list it’s covered!

Things that af­fect the cost of your in­sur­ance

Whilst boat type, size, fea­tures and price have an ob­vi­ous im­pact on the price of your premium there are some other things that have an ef­fect. One thing that has had an im­pact on yacht in­sur­ance world­wide is the grow­ing amount of boat own­ers and, in turn, boats on our wa­ters. With larger num­bers of peo­ple new to driv­ing and main­tain­ing boats it has led to more claims caus­ing over­all premium raises. Fur­ther­more, the in­flux in boats makes it harder to find good ma­rina space or ad­e­quate as­sis­tance or in­land stor­age in the case of nat­u­ral dis­as­ters. An­other as­pect that has an ef­fect is the nav­i­ga­tion area. Dif­fer­ent cruis­ing ar­eas have dif­fer­ent risks as­so­ci­ated with them and pre­mi­ums tend to re­flect this. Hur­ri­cane Irma and Cy­clone Deb­bie have forced un­der­writ­ers to in­crease pol­icy costs in trop­i­cal storm prone ar­eas. Al­ter­na­tively, trav­el­ling through open in­ter­na­tional wa­ters holds the risk of dif­fi­cult res­cue op­er­a­tions, sal­vage and wreck re­moval. Higher risks cre­ate higher pre­mi­ums whilst lower risks re­sult in cheaper pre­mi­ums.

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