Why do I need Hull insurance if my boat is out of the water over the winter?

November 08, 2016

Sometimes at the end of the sailing season, yacht owners question whether they need their Hull policy as they are not using their vessel or it is out of the water. While the question is understandable, it is a mistake to think that a boat out of the water is not exposed to risks such as fire and theft or other risks.

Earlier this year we had a case where a sailing yacht of one of our clients was standing ashore in a shipyard in Mallorca. A storm caused a neighbouring boat to fall off its blocks and onto our insured´s boat, causing damage to the hull. In this case the Third Party insurer of the boat which caused the damage denied liability so a claim on their insurance was not possible. The insured´s Hull policy had to cover the cost of repair. The same would apply if for example the storm would have caused a tree to fall on the boat and cause damage. If there is no liability on behalf of the shipyard and the event was caused by force majeure then these damages would not be covered. With our Pantaenius Hull cover force majeure is an insured event and therefore damages would be covered. You can rest assured that your investment is protected all year round.