Building - Outfitting - Refitting

Some hints on Insurance

The need for insurance may not always be appreciated for craft safely tucked away ashore while being worked on. There can, however, be problems where an insurance would prove to be a sound investment.

Fire, storms, theft and vandalism are but four areas where loss or damage can occur, even to craft owned by the most careful owner. Third Party insurance is also essential and, if work is being carried out in a yard, may be compulsory.

When should an Insurance be Started?

From the time there is a value at risk. If fitting out a professionally built hull, for example, the insurance should be taken out from the moment the hull becomes your property.

What Information do Insurers Need?

Apart from the usual boat insurance questions:-

1. Where will the craft be kept.
2. The inception value i.e original purchase price.
3. How long it is anticipated that the project will take.
4. What will be the final completed value, this should be the estimated market value at the completion of the work not just the cost of the materials.

Will there be a need for a Survey?

Firstly ask your insurers whether they will require a survey. In any event it is wise to involve a surveyor who should:-

1. Be asked to visit the craft before any refitting is done, while she is stripped out.
2. Be asked to suggest when a further visit will be required and then be called back at these stages.
3. Be called back when all is done to give a final "signing off" report.

What about Increasing Value?

It is normal to insure, from the outset, at the final estimated competed value. This ensures that, at any stage, the sum insured should be adequate. The premium rating structure takes into account that the value is low at the start and that it will steadily increase as the work progresses.

If a surveyor is involved he can keep the valuation "up to date".

Points

1. Keep all receipts for items purchased as the work progresses.
2. Keep a record of the work done – perhaps with photographs.
3. If you wish to use the boat during the work, insurers must be advised and their agreement obtained.
4. Tools are not covered and should be insured under your household insurance.

The above is for information purposes only. It is not intended to define legal terms nor is it intended to affect the interpretation of any policy we may issue.

If you have any questions concerning your insurance, there is no replacement for having your individual questions answered individually by your insurance broker or insurer.