Boat insurance is essential both to protect you, as owner of the craft, and your potential liability
to third parties. Mr DS Kirkham, retired from Eagle Star, has kindly written the following brief
guidance notes for assistance to boat owners.

1. Reputable Companies. It is important to ensure that insurance is with a Company which will provide a prompt and efficient service.
2. Extent of Cover. Third Party cover protects an owner in respect of claims for damage which he may cause to other boats or injuries to other people, but it does not meet the cost of damage to one's own boat. Cover on full terms (comprehensive cover) includes the cost of repair or loss of the boat insured. Marine cover is normally arranged on an 'agreed value' basis rather than market value at the time of loss.
3. Agreed Value. The value for insurance purposes need not be the original acquisition cost of the boat. It does depend upon individual circumstances which vary from craft to craft and you should consult your insurer particularly when the craft is used for racing. One-design craft (e.g. White Boats, Yeoman) are relatively easy to value but one-off cruisers, whether sail or power, may be more difficult, particularly if they have been owned for some time. Consult your insurer for guidance.
4. Racing Risks Extension Clause. As boats racing are liable to be pushed harder than when cruising, insurers will only meet damage to the mast, spars, sails and running rigging, where a Racing Risks Extension Clause is included within the policy; cover under this clause will provide for reimbursement up to two-thirds of the total cost of the loss. It is essential that the true replacement cost of these items is stated and agreed at the outset as otherwise the settlement figure will be proportionately further reduced.
5. Third Party Indemnity. Insurers normally recommend that this is not less than £2,000,000, bearing in mind that this may involve injury to third parties as well as damage to third party property.