Boats are expensive items, but that doesn’t mean you necessarily need to pay the earth to insure them! Velos Insurance Services advises when your next renewal approaches it could pay to check that your policy is tailored to your exact requirements to make sure you are paying the right price.

Case Study
Velos were recently approached by the owner of a Cranchi 57 as he felt he may be paying too much to his current insurers. Upon discussion it was found that the cruising range his current insurers had given him was wider than he needed and he also felt that his vessel may not be worth quite as much as it was insured for.

Velos provided a quotation based on the correct cruising range, they also offered the option of increasing the excess as this was reflected in a reduced premium. Finally, Velos demonstrated how the premium would reduce further still if the Total Sum Insured was reduced to reflect the current value of the vessel. The client was delighted and opted for the higher excess and lower Sum Insured to give him a premium that better suited his budget for the coming year.

Velos have compiled a list of some of the things to check for on your policy to make sure you are not paying too much:

1. Do you have the correct cruising range noted on your policy?
For example, if you are based in the Mediterranean, do you really need full Med cover, or do you actually only plan to cruise in a certain area.
2. Do you have the correct Total Sum Insured?
What is the current market value of your boat? Has it decreased in value at all in the past year? If so you should notify insurers of the reduced value. This will be reflected by a reduced premium accordingly.
3. Check your policy excess.
The excess is the amount you will need to pay in the event of a claim. It is always worth considering the option of a higher excess to gain a more competitive premium. It is also important to check the excesses on each quote gained when comparing premiums as often people will only look at the bottom line figure without comparing the excesses.
4. Have you had the correct No Claims Discount applied to your policy?
Insurers usually give a No Claims Discount (NCD) on boats up to a certain value. This can vary from insurer to insurer – some will give NCD on boats up to £250,000 in value whilst others with allow the discount on values up to £1,000,000, so it is always worth checking if you have been given the maximum discount you are entitled to.

There are also a number of other things that you should check carefully when you are reviewing your insurance. If you would like to find out more Velos would be more than happy to help you with a ‘health check’ on your policy. Whether it is for a new purchase, or just to gain a comparison with your existing policy, why not click on the link - or phone 020 7375 3273 if you would prefer to speak to a real person about your valuable asset.

Velos are an independent marine insurance broker with a panel of first class marine underwriters, both Company and Lloyds; they are able to ensure that they find the most suitable policy for each individual’s needs at the most competitive premium.

Their knowledgeable and friendly staff are there to ensure you understand exactly what your policy will and won’t cover from the outset.

Velos Insurance Services Limited are authorised & regulated by the Financial Services Authority