Frequently Asked Questions

FAQs are a quick research resource to assist with answering your marine insurance questions. While helpful, they are no substitute for asking about your specific circumstances, so don't hesitate to contact us. We endeavour to keep the FAQs up-to-date, but the market is fluid, so treat them only as guidance. DO NOT RELY SOLELY ON THE FAQs.

What is a Deductible and is it the same as an Excess?

The Deductible is the amount you will be required to contribute in the event of a claim. Any settlement figure will be less the Deductible. Typically there will be one Deductible for the vessel and other lesser Deductibles for ancillary items such as tenders and outboard motors. Deductibles may be higher while your vessel is on a Blue Water passage. Deductibles that are specific to your Insurance will be stated on your Cerificate of Insurance. The words Deductible and Excess mean the same and are interchangible.

What are the Differences between Market Value and Agreed Value Policies?

At the time an Insurer first agrees to insure your vessel you are required to provide your best estimate of the vessel's market value. This requirement is the same for both Market Value and Agreed Value policies. In the event of a total loss the settlement under an Agreed Value policy will be the Agreed Value. The settlement under a Market Value policy will be the Market Value at the time of loss. Generally, Market Values diminish as vessels age.

What is a Rig Report?

A Rig Report involves a thorough examination of a vessel's standing rig and the preparation of a report including recommendations. Until the repairs recommended are attended to, the Rig will not have Insurance cover.

A Rig Report will generally be required before a Blue Water passage, particularly if the vessel has already completed a long passage.

Some Insurers require wire rigging to be replaced at the earlier of 10 years or 40,000NM. Rod Riggine has different inspection and replacement criteria .

How is Blue Water Insurance defined?

A Blue Water Insurance passage begins when you clear Customs and finishes when you clear into customs at the end of your passage. If you intend to return to your port of departure, your Blue Water insurance status will prevail throughout your passage, even though you may clear in and out of customs in other countries along the way. Similarly, if you are embarking on a point to point Blue Water passage, the conditions of your Blue Water Insurance will prevail throughout the passage.

If your policy has a higher level of deductible/excess for Blue Water, this is applicable throughout the Blue Water passage, not only beyond the territorial limit (usually 200NM).

What is the cost of Public Liability Insurance (3rd Party)?

For vessels that meet the criteria, the price is fixed in relation to the period of cover: 

  • 1 month is NZ$145
  • 6 months is NZ$275
  • 8 months is NZ$325
  • 12 months is NZ$395
  • 12 months only for Ferro hulls - NZ$525

What are the criteria for Public Liability Insurance (3rd Party)?

A private pleasure vessel is eligible for Public Liability Insurance if it is:

  • Not more than 20 meters
  • Professionally built (or has a satisfactory Condition Report)
  • Hull material is GRP, wood, steel or aluminium
  • Ferro hulls and vessels over 40 years require a Condition Report
  • Maximum speed for a powered vessel is 30 knots
  • New Zealand Public Liability (3rd Party) coastal navigational limit is 100NM and includes marinas and approved hardstands
  • Other navigational areas are available subject to negotiation
  • While on a hard stand and elsewhere, structural repairs, "hot work" and rig repairs are not covered
  • When not in use, the vessel must be in a marina or on a certified mooring and in an approved location

What is a Condition Report?

A Condition Report involves an inspection of your vessel by a Marine Surveyor or a Boatbuilder. A Condition Report takes less time and is less expensive than a Survey. The inspection can be performed while the vessel is afloat and the report can be in the form of a check list. Contact us for a copy of our standard Condition Report form. For Public Liability Insurance (3rd Party), vessels over 40 years and ferro hulls require a Condition Report.

What is a Survey and when is one required?

A Survey involves an out-of-water (dry) inspection and the preparation of a Report that includes recommendations that must be complied with before insurance cover commences. The survey must be undertaked by an independent Marine Surveyor (YBDSA/IIMS or equivalent). 

Each Insurer has its own criteria for a Survey, but typical examples are:

  • At 15 years of age
  • After a sustained period of Blue Water sailing and before the next passage
  • Following an incident where the vessel has had significant damage
  • Any vessel that is not professionally built

To avoid the additional costs of a haulout, schedule a Survey during a regular haulout and in anticipation of key events such as a Blue Water passage or a key age point such as 20 years.

Definitions

These definitions are generic and should be used only for guidance. Each insurance policy has definitions specific to that policy.

Actual Total Loss

The subject matter of insurance is completely destroyed or the Insured is irretrievably deprived of it.

Appropriation/Requisition

Capture, seizure, arrest, restraint, detainment, confiscation, nationalisation, requisition or pre-emption and the consequences of, or any attempt at any of these.

Constructive Total Loss

The subject matter of the insurance is damaged to such an extent that the cost of effective repair or reinstatement would exceed the sum insured.

Deductible/Excess

The amount shown on the Schedule/Certificate for each item, payable by the Insured, except in the case of Actual or Constructive Total Loss, where the claim will be paid in full (without deduction). If an incident produces a claim under more than one section of the policy, usually only the highest Deductible/Excess will apply.

Due Diligence

The duty of care expected from, and ordinarily exercised by, a reasonable and prudent Insured.

Endorsement

An Endorsement is an amendment to the Schedule/Certificate or the Policy which supplements or modifies the contract between the Insured and the Isurer. An Endorsement is usually issued in response to new information from the Insured.

Fair and Reasonable Costs

An amount which would be paid by a prudent Insured. For example this would not include overtime and accelerated costs in order to reduce the repair time.

Inherent Vice

A natural characteristic of a good or property which of itself is the cause of (or contributes to) its deterioration, damage, or wastage without the intervention of any fortuitous external cause.

Insured

The person(s) or legal entity shown in the Schedule who has a financial interest in the Vessel.

Insured Event

The happening of an event or series of events causing loss or damage covered by this insurance.

Insurers/Underwriters

The entity contracted by you to provide the insurance cover (as destinct from your broker who is not party to that contract).

Latent Defect

A defect which cannot be discovered by a person of competent skill using ordinary care.

Machinery

The Vessel's main or auxiliary engine(s), outboard motor(s) and generators together with all associated electrical equipment, piping, fittings, cables, shafts and propellers.

Malicious Act

An intentional disregard of the rights or safety of others and the deliberate act or the deliberate failure to act where there is a risk of loss, damage or personal injury.

Navigation Limits

The Geographical area, as defined in the Schedule, in which the Vessel will be located and Policy cover will apply. Use of the Vessel outside the Navigation Limits shown in the Schedule is only covered if specifically agreed by the Insurer.

Parties

The Insured and the Insurer are Parties to the contract and any claim will be settled between the Parties. The broker is not a party to the contract and may choose its role in the Claims process. The Marina Shop chooses to be involved in any Claim.

Period of Insurance

The period shown on the Schedule/Certificate during which this insurance is in force.

Permitted User

Any person using or in control of the Vessel with the Insured's permission.

Personal Effects

Property of a personal nature not normally sold with the Vessel but excluding the following items: jewellery and watches; antiques and works of art; consumable stores; documents, negotiable instruments & securities, travellers cheques & currency and collectable items such as coins and stamps.

Policy

This document which incorporates the Schedule, any Endorsements, the Proposal Form and any other information provided by the Insured.

Proposal Form

A means by which the Insured advises the Insurer of details of the risk to be insured and which ultimately is incorporated in the Policy.

Schedule/Certificate

Part of the contract between the Insured and the Insurer that is specific/personal to the Parties.

Seaworthy/Seaworthiness

Fit to encounter the ordinary perils of the seas, rivers, lakes or other navigable waters, properly crewed, equipped, fuelled, provisioned and with all equipment in proper working order. Seaworthiness applies not only to the physical conditions of the hull but to all its parts, equipment and gear.

Tenders

Other craft used in connection with the operation of the Vessel and permanently marked with the Vessel's name or other significant markings.

The Vessel

The Vessel named on the Schedule including her machinery, electronics, gear and equipment as would normally be sold with the Vessel.

Underwater Gear

Rudder, strut, shaft and propeller.

Usage

The Vessel insured herein will be used for private pleasure purposes only. Any other usage must be specifically agreed by Insurers and will be shown on the Schedule.

Wilful Act

A deliberate act or the deliberate failure to act in circumstances where there is a risk of loss or damage.