Boat insurance changes

[435_Mark]

G'day,
Received my Suncorp boat insurance renewal today and upon reading the segment about what the insurance policy DOESN'T cover was very upset to find overheating/seizing the motor due to plastic bag blocking the water intake is specifically NOT covered!! (Page 68 Boat insurance product disclosure statement)>:(


It's one of the main reasons I have boat insurance having worked in the outboard industry (a long time ago) and saw first hand how often it happened back then! I don't reckon it would be any better now.

In an attempt to shortcut the tedious process of ringing all the insurance companies and reading the inevitable fine print does anyone know of an insurance company that does cover water intake blockages??

Thanks,

Mark

[Angla]

Might actually be a plastic bag but could be described as sea weed

Anonymous

[DAVE_S]

Try clubmarine they state they will cover for external blockages .

[ShaneC]

I cant find the PDS for the life of me, but Suncorp sent me one the other day, and I am sure it said something in there about boats not being covered whilst in transit (ie. home to the ramp). I may have read it wrong, I was just skimming over it quickly, but SURELY that can't be the case????

[stevelcqld]

I have Suncorp cover and it does cover the boat whilst being towed.

Cheers,

[ShaneC]

No worries, thanks Steve...

As I only read over it quickly the other day to check for something else I saw it written but didnt get a chance to look into it. When the PDS reappears from the black hole in my study I will find the page and let you know what I was reading. Maybe it was a towing legality issue???

Thanks mate,

Shane

[Jabba_]

There's more then one way to skin a cat..

As Angla said, tell them it was seaweed, or your pee hole was blocked with mud or sand.. Just never mention a plastic bag..

[Black_Rat]

I have Suncorp cover and it does cover the boat whilst being towed.

Cheers,

Steve,

If I was you or anyone else you will need to get that clarified and any other problems that might prop up with towing (The Trailer!) ;) I was with Suncorp for 4 years when I had my boat.

At last years' protest boat rally through the city I had 2 tyres go flat on me on the way home. One of the original tyres and the new spare tyre as well :( Being a weekend afternoon nothing was open and I needed a tilt-tray to get the boat and trailer home.

I was less than 5klms from home and when I rang Suncorp they flatley denied me assistance to be covered under my policy and refused to assist in orginising a tow truck unless for a fee. :angryfire:

There excuse was it was a maintenance issue ! Fair enough the original tyre but for the new tyre WTF ! >:( After forking out some $1500 + over the 4 years I was insured with them I was pissed off big time ! It ended up costing me $150 to get towed 5klms which I had to orginise myself. Beware of Suncorp when towing !

Damo.

[ShaneC]

Interesting you say that Damo,

I originally rang Suncorp to enquire about an insurance issue when a mates big yacht was struck by lightning recently which fried evrything electrical and enquired about my cover as my boat is stored in the open under a cover. The answer I received off the guy at Suncorp was verrrry non commital. He said, "I'll send you a PDS as we have changed our boat insurance policies recently".

I got it and now I can't find it!! But there was definately something in there about towing under their 'Things we do not cover' section.

I have insured just about everything through Suncorp now and in the past, and it seems nobody is willing to give a straight answer with regard to boat policies.

I will ring them tomorrow and find out once and for all and let everyone know the circumstances under which you are not covered.

Shane

[435_Mark]

Angla,

The pds actually states that it will not cover ANY blockages that cause damage to the motor and use a plastic bag as an example. Some bean counter is probably getting a pat on the back for saving Suncorp some dollars. However, if I move my boat policy I will also move the cars (2 comprehsive and one fire and theft + compulsory third party), the house and contents, etc. to another company. Waste of time paying for insurance that doesn't cover what it should. A case of voting with my feet!

[dnej]

http://www.nrma.com.au/boat-insurance/features-benefits.shtml#cow

No problems with any of that with NRMA, and they are agreed value.Exemptions pages 18 19 48
Suncorp is not agreed value, nor is RACQ
David

[bennyboy]

Steve,

If I was you or anyone else you will need to get that clarified and any other problems that might prop up with towing (The Trailer!) ;) I was with Suncorp for 4 years when I had my boat.

At last years' protest boat rally through the city I had 2 tyres go flat on me on the way home. One of the original tyres and the new spare tyre as well :( Being a weekend afternoon nothing was open and I needed a tilt-tray to get the boat and trailer home.

I was less than 5klms from home and when I rang Suncorp they flatley denied me assistance to be covered under my policy and refused to assist in orginising a tow truck unless for a fee. :angryfire:

There excuse was it was a maintenance issue ! Fair enough the original tyre but for the new tyre WTF ! >:( After forking out some $1500 + over the 4 years I was insured with them I was pissed off big time ! It ended up costing me $150 to get towed 5klms which I had to orginise myself. Beware of Suncorp when towing !

Damo.


Of course they didn't cover it. If you had 2 flat tyres on your car would the insurance cover towing. NO. That's why RACQ roadside assist exists.
Club Marine will very shortley be releasing a roadside assistance package FREE with their cover which will cover 200km of towing.
Unless you tick the transit risk when you take out a policy your boat is not covered whilst in transit. Normally your car insurance will cover your boat while being towed but check the fine print

[TimiBoy]

I have QBE Marine Insurance, and I'm covered. I asked my Broker these questions:

1/ Is the boat covered for damage in transit to/from the ramp?
2/ Is the outboard covered for damage/seizing caused by blockage of cooling lines or intake by plastic bags?
3/ Are the Landcruiser (my new car) and/or the boat covered while driving on the sand at Fraser Island (the beach and the trails are gazetted roads)?

He came back with yes, yes, and yes. Also he called me an ar$ehole for going to Fraser.;D

Cheers,

Tim

[Jeremy]

RACQ provides cover for towing a 'caravan' which can include boats. If you are with RACQ, for a small additonal fee you can have cover for a trailer you are towing.

Jeremy

[backlash08]

when I rang RACQ to check on insurance for my new boat (have house, cars etc with them and have had boats, never had a claim) they asked for market value, I told them and they thanked me and said that they dont cover trailer boats of that replacment value, I was very suprised - with club marine again

[Spaniard_King]

Clee, that fisher must be expensive.. I got my ED covered for $90K with RACQ

[freddofrog]

Moral of story is you gotta read the fine print.

Some of the more interesting exclusions I found in various pds were:
- No transit cover
- No transit cover while interstate
- No cover for accidental sinking (like who sinks their boat on purpose?)
- Public liability cover only for nominated people
- Car insurance only covers trailer, not trailer contents (eg boat, furniture etc)
- Must be locked behind fence and gate
- Boat must be locked to trailer
- Trailer must be locked to ground?
- Chains and padlocks are not suitable security devices
- No theft cover while boat is in transit (eg while stopped at lights) or while parked on the road/verge (eg in front of your house)
- Cause you have 180hp combined on a 5.2m boat, it is therefore a speed boat capable of going 50+ knots and which incures extra premiums (twin 90hp on 5.2kevlacat - 35kn max)
- Personal items not covered (or very limited coverage), eg fishing gear, mobile phones, watches, sunglasses...
- And the list goes on and on

Because of the above I chose Trident Insurance. Club Marine was a close second. All the others (and I did a lot of research on this) didnt' come anywhere near close to these two, both in term of premiums and coverage.

[backlash08]

Clee, that fisher must be expensive.. I got my ED covered for $90K with RACQ

Gary, I couldnt work it out either, maybe something to do with postcode of
location?? total cover I wanted as replacment value wasnt much more than 90K

cheers - Craig

[FNQCairns]

Another one to check is if the car and boat/trailer parts company whether the damage caused to the Aston Martin will be covered in any way! trailer and boat together or in part!!

and if your mate tows it and he is uninsured whether you have any coverage at all (commonwealth privacy legislation forces a person to just believe!)

cheers fnq

[Black_Rat]

Of course they didn't cover it. If you had 2 flat tyres on your car would the insurance cover towing. NO. That's why RACQ roadside assist exists.
Club Marine will very shortley be releasing a roadside assistance package FREE with their cover which will cover 200km of towing.
Unless you tick the transit risk when you take out a policy your boat is not covered whilst in transit. Normally your car insurance will cover your boat while being towed but check the fine print

If I had 2 flats on the Navara and needed towing? can't answer that one, never happened, I had Nissan Roadside Assist for 3 years and never called upon it ;)

If the trailer had been stolen at the ramp they would have arranged a trailer to retrieve the boat out of the water and sent me on my way :)

Had I have been involved in an accident both trailer and boat would have been taken to a place of my choice :)

After forking out some $1500 over 4 years I expected a little more in the way of assistance from Suncorp ::) Then again in the 20+ years I have been banking with them I wasn't that surprised 8-) ;D ;D ;D They are crap !

Damo.

[PinHead]

exclusions on my policy:


We will not insure you for:

1.5.1 loss of outboard motor(s) when secured to the boat

in a manner other than that specified or
recommended by the manufacturer;

1.5.2 theft by persons to whom you have loaned your
boat;

1.5.3 loss or damage intentionally caused by you or a
person acting with your express or implied consent
unless required by law;

1.5.4 depreciation;

1.5.5 loss or damage caused by normal wear and tear;

1.5.6 loss or damage caused by timber rot, delamination,
osmosis, deterioration, vermin, marine growth;

1.5.7 loss or damage caused by rusting or other forms of
corrosion, electrolysis;

1.5.8 loss or damage caused by lack of maintenance;

1.5.9 mechanical, structural, electrical or electronic
failures. The resultant damage to your boat due to
the failure will be paid for, but the cost of repairing
or replacing the item that failed will not;

1.5.10 the cost of repairing or replacing any part of the

boat defective caused by fault or error in design or
construction or faulty workmanship;

1.5.11 financial or mental loss which occurs because you

cannot use your boat;

1.5.12 accidental loss or damage to fishing gear, diving
equipment, tools and/or water ski equipment while
in use;

and guaranteed agreed value.

[Tangles]

What? no mental loss because you cant use your boat, outrageous.
least it doesnt on the face of it exclude mental loss of not catching a legal snapper lol

[oldboot]

Suncorp have some very interesting guidelines......they will not insure a worh shed with a timber floor... my insurer does not even ask what the floor is made of for that matter they don't even want to know what the structure is made of.

It seems to me that suncorp are a lowest common denominator insurer, they are happy to deal with the most common things and they want to exclude anything that is an unpredictable risk.

That said they would give insurance on an early model 14" aluminium boat for $172 last time I asked
and they wanted to know all sorts of detail just for the over the phone quote.

One of the best thing I ever did was to put my insurances thru a good broker.

And you don't need to be a rich b@$%&!d or a high flier to use a broker.

There are a number of specilist insurers that know and are prepared to cover unusual risks at a reasonable price....a good broker will know who they are.

cheers

[TimiBoy]

And you don't need to be a rich b@$%&!d or a high flier to use a broker.

There are a number of specilist insurers that know and are prepared to cover unusual risks at a reasonable price....a good broker will know who they are.

cheers

Bingo!

I've used one for years, never had a claim denied for work or home. And there have been some curly ones.

Last year we had an entire bathroom replaced because of a leak caused by the original builder not gluing the pipes properly.

Nearly every insurer will not cover that. I had taken a more expensive cover, because my Broker had said I must. He said it was worth the money, and by crikey it was. Saved me $12K. Worth every penny, right?

Cheers,

Tim

[TheRealAndy]

http://www.nrma.com.au/boat-insurance/features-benefits.shtml#cow

No problems with any of that with NRMA, and they are agreed value.Exemptions pages 18 19 48
Suncorp is not agreed value, nor is RACQ
David

I am with RACQ, my boat is insured for agreed value.

[ShaneC]

I have QBE Marine Insurance, and I'm covered. I asked my Broker these questions:

1/ Is the boat covered for damage in transit to/from the ramp?
2/ Is the outboard covered for damage/seizing caused by blockage of cooling lines or intake by plastic bags?
3/ Are the Landcruiser (my new car) and/or the boat covered while driving on the sand at Fraser Island (the beach and the trails are gazetted roads)?

He came back with yes, yes, and yes. Also he called me an ar$ehole for going to Fraser.;D

Cheers,

Tim


Hey Tim,

I hope you are right!! I spoke to QBE today, their coverage is much better than Suncorp, however the guy did say that they do not cover for blockages to cooling lines/ intakes. I am banking on the fact the fella wasn't sure what I was talking about, but I will be able to get a firm and decisive answer before I pay the premium and/ or use the boat again. Their transit cover seems very good too, in answer ro someone elses question, ANYBODY who is towing your boat with your permission is covered under the policy as long as there is nothing illegal going on (drink driving etc)...

They also allowed me to itemise electronics instead of an overall value, and cover fishing/ sporting gear for $500 an item or $5000 an event, which I thought was ok. A tad dearer than Suncorp but I believe its worth it if the guy was wrong about the placky bag thing which I hope he was.

Shane

[435_Mark]

Thanks guys,

Ill chase up Trident, Racq and QBE and give a broker ago and see how it looks from there. Ever since Suncorp merged with Metway there seems to have been a continual decline in the service you can expect.

cheers,

Mark

[PinHead]

I am with RACQ, my boat is insured for agreed value.

Be careful on that one Andy..you may have agreed value but they may not pay it. The following is from thier PDS:



"If your property is a total loss, pay you or any fi nancier
who has a fi nancial interest in the property the lesser of:
• the market value of your property at the time of the
accident/event or theft; or
• the sum insured shown on your certifi cate of
insurance."

Club has the same and I think NRMA does as well.
My broker got mine done at guaranteed agreed value..clearly written on the policy.

[freddofrog]

Ill chase up Trident, Racq and QBE

Pretty sure Trident is underwritten by QBE, but Trident has better premiums and a better policy IMHO.

[bennyboy]

Be careful!

One thing to be very careful of is that alot of companies don't cover your boat over and above the cost of salvage. If your crossing a bar, loose the boat, it get's washed up on the rocks and has a fuel spil. It may cost $50k to salvage the boat.
If your boat is insured for $40K the insurance company has to pay for the cost of salvage however if you don'e have cover over and above the cost of salvage they will say it cost us $50K you are only insured for $40K we don't replace your boat.

Check RACQ, NRMA, Suncorp, you will be very surprised!

[FNQCairns]

Be careful!

One thing to be very careful of is that alot of companies don't cover your boat over and above the cost of salvage. If your crossing a bar, loose the boat, it get's washed up on the rocks and has a fuel spil. It may cost $50k to salvage the boat.
If your boat is insured for $40K the insurance company has to pay for the cost of salvage however if you don'e have cover over and above the cost of salvage they will say it cost us $50K you are only insured for $40K we don't replace your boat.

Check RACQ, NRMA, Suncorp, you will be very surprised!

Sheesh.... that's a right con, the comprehensive insuring of private boats is looking like a right mugs game!

cheers fnq

[TimiBoy]

Hey Tim,

I hope you are right!! I spoke to QBE today, their coverage is much better than Suncorp, however the guy did say that they do not cover for blockages to cooling lines/ intakes. I am banking on the fact the fella wasn't sure what I was talking about, but I will be able to get a firm and decisive answer before I pay the premium and/ or use the boat again. Their transit cover seems very good too, in answer ro someone elses question, ANYBODY who is towing your boat with your permission is covered under the policy as long as there is nothing illegal going on (drink driving etc)...

They also allowed me to itemise electronics instead of an overall value, and cover fishing/ sporting gear for $500 an item or $5000 an event, which I thought was ok. A tad dearer than Suncorp but I believe its worth it if the guy was wrong about the placky bag thing which I hope he was.

Shane

I just rang my Broker. They've had a successful claim on a plastic bag, and they have another happening atm which is curly - cooked a piston, but the bag's gone - "could" be a machanical issue, but QBE have decided to pay, because of the relationship they have with the Broker.

Re salvage, you should be paid the value of the boat. Salvage is the Insurer's responsibility, and enables them to recover costs. If the cost to salvage is higher than the value, they might leave it, unless it is a pollution issue.

Thus sayeth the Broker.


Cheers,

Tim

[Scott nthQld]

Tim, what broker did you go through? Thinking of getting a new rig soon and insurance will be on the cards for sure. I'm not spending 50k on a boat to lose it one way or another and having nothing to show.

Are they local to you? And do they work with out of town clients?

[TimiBoy]

Tim, what broker did you go through? Thinking of getting a new rig soon and insurance will be on the cards for sure. I'm not spending 50k on a boat to lose it one way or another and having nothing to show.

Are they local to you? And do they work with out of town clients?

Mate they sure do - they are in Adelaide, and I'm in Brisbane. Once you're ready, I'll put you in contact with John. He's a good guy, has got me out of trouble more than once, and has provided me with excellent advice over the years.

Cheers,

Tim

[ShaneC]

With the placky bag issue,

With most modern engines, surely the alarm would go off and the motor into limp mode before you fry a piston wouldn't it?? Not meaning to hijack a thread, PM me if neccessary...

Got me all paranoid now, and I've never hit a bag in many years of boating.... but if I was gonna hit one, I'd hit one now that Ive forked out a fortune for a 'proper' offshore boat.

Shane

[TonyM]

With the placky bag issue,

With most modern engines, surely the alarm would go off and the motor into limp mode before you fry a piston wouldn't it?? Not meaning to hijack a thread, PM me if neccessary...

Got me all paranoid now, and I've never hit a bag in many years of boating.... but if I was gonna hit one, I'd hit one now that Ive forked out a fortune for a 'proper' offshore boat.

Shane

Hi Shane

I've been lucky enough not to get the placcy bag issue, although did have the alarm go off at Monduran last trip after weed blocked the intake. The temp alarm went off on the Zuke before it needed to go into limp mode, I shut it down immediately, cleared the intake and all was good - technology can be a wonderfull thing! :)

Re the insurance issue the thing that annoys me is that ClubM won't insure gear in the boat unless it's in a locked cabin - no cabin on a Hornet although there are plenty of lockable compartments and the buggers will not cover loss of gear (rods, reels etc) :(

Cheers
Tony

[dnej]

http://www.racq.com.au/__data/assets/pdf_file/0020/17408/Boat_PDSGTBI2__10_08i.pdf
The Real Andy.
The RACQ policy is replacement, for the first two years only.
After that , its market value, or sum insured, which ever is the lesser amount. So you can insure it for 30000, but when the time comes . they will only give you market vakue, according to the assessor. No good for this little black duck.
David

See page 10 of the product disclosure brochure