Boat insurance: Lexicon - Glossary: The most important terms from A to Z

Deduction new for old

If the "new for old deduction" is waived in comprehensive insurance, this means that the costs of new parts for the repair of partial damage are covered by the insurer up to the amount of the agreed cover sum, without age deductions.

All-risk cover

Provides protection against all risks that are not expressly excluded in the insurance contract. So be careful: the quality of all-risk cover stands and falls with the exclusions! The advantage for the policyholder: In the event of a claim, it is not the insured person but the insurer who has to prove whether an exclusion applies.

Outsourcing

Maritime inventory, accessories and equipment are usually not covered by normal household contents insurance. Therefore, make sure that navigation equipment and/or the outboard motor, for example, are also insured in the boat hull if they have been taken home for storage.

Salvage/wreck removal costs

Immense claims are incurred by owners whose boats run aground or sink and have to be salvaged at the instigation of the authorities or third parties. The policy should therefore definitely include all salvage costs, or even better, wreck removal costs. In particular, these should include not only the scrapping of the boat, but also the necessary removal of environmental damage.

Boat value

Also called current value. Corresponds to the sum that must be raised in order to acquire a corresponding vehicle again.

Single risk cover

Only the risks specified in the policy are covered by the insurance. In the event of a claim, the policyholder must prove that the damage incurred falls under the insured risks.

Travelling area/area exceeded

Defines the area in which insurance cover exists. Short-term transgressions - important for holiday cruises, for example - should be covered.

Fixed rate

see sum insured

Consequential damage

Damage that only occurs as a result of the actual loss event. They should always be fully covered by the insurance.

Bad debts

If a third party responsible for the damage cannot be traced or has neither liability nor personal assets, you are left with the loss. In this case, it's a good idea to include loss of receivables cover in your own liability insurance. This will then cover you instead of the other party. However, only the current value is insured in this way.

Dangerous/negligence liability

Your own boat liability insurance does not have to cover all damage. If, for example, despite being properly moored, your own boat breaks free from its berth during a severe storm that is atypical for the region and causes damage to neighbouring boats, you are not personally at fault. The other owners who suffer damage are left empty-handed - unless they have hull insurance. In this context, lawyers speak of fault-based liability. This contrasts with strict liability, which car owners have to deal with, for example. If damage is caused by your own car, the owner is always automatically liable, even if they are not responsible for the cause of the damage, for example in the event of an engine fire.

Opposing liability

Anyone who suffers damage as a result of the negligent or intentional behaviour of a third party receives their money from the person who caused the accident or from their liability insurance, if they have one. However, this only ever reimburses the current value. The difference to the fixed value can then be recovered via your own boat hull insurance if necessary. See also loss of receivables.

Scope of application

see sailing area

Obligations

The obligations that the policyholder must fulfil, such as paying the insurance premium on time or informing the insurance company immediately of any damage.

Personal effects

Personal items that are not part of the boat's equipment or inventory, but are nevertheless on board and should therefore also be insured. For example, the computer used for navigation, high-quality weather clothing, fishing and diving equipment, sunglasses.

Discounts/discount savers

Discounts when taking out a policy. Some insurers offer new customers discounts of 10 or 20 per cent. However, if a claim does not immediately result in a premium increase for the customer, this is referred to as a discount saver.

Deductible/excess

Boat policies are almost only available with an excess from around 250 euros upwards. In the most favourable case, however, the agreed excess only applies to self-inflicted driving damage. You would then not have to pay for the consequences of burglary.

Total loss

This is the case if a ship is irretrievably lost or if repairing the damage would exceed the sum insured (economic total loss).

Transports

Boat transport by land should be covered by the policy, whether by road trailer from home to the harbour or by storage rack from the jetty to winter storage.

Sum insured

The value at which a boat is insured. Most insurers today offer contracts with a so-called fixed valuation. The specific value that will be paid out in the event of total loss of the boat is then agreed in the contract. But beware, some insurers only feel bound to the fixed rate for the first few years, after which the fixed rate must either be readjusted or only the current value of the boat is insured after the commitment period. If the price of an equivalent new boat rises in the meantime, the insured person must pay the difference out of their own pocket if they have not adjusted the fixed rate.

Time value

see boat value