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Choosing Boat/Yacht Insurance in Spain

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boat insurance in spainSo, you are moving to Spain – a perfect country for expats? And you are also taking your boat/yacht? So, now you are looking for good boat insurance in Spain? Well, you must have realized that it is overwhelming to see such a huge variety of products and policies – a never-ending list of coverage, like Voluntary and Obligatory Public Liability, Total Loss, Sea Rescue, Breakdowns, Spanish & English Clauses – all enough to make you confused about what to look for while insuring your vessel. Let’s clear some of this confusion.

While traveling in your boat or yacht, you just think of enjoying the waves, breeze in your hair and the unending horizon awaiting you. But you should also think on the dangers that await you and for which your boat should have a good insurance cover, which promises your safety at sea.

Though there are a variety of insurance packages, you have your own needs and so, you should study these packages carefully to know whether they can provide you with the right coverage and ensure that you are not paying for things you don’t need.

There are two basic types of Public Liability: first is Obligatory Public Liability which covers only damage to a third party up to a limit set by law. And the second is Voluntary Public Liability, which assures coverage to your own boat.

For processing any possible claim, the captain of the boat should possess appropriate qualifications and the boat should have passed all the inspections needed by the governing bodies and should have all the necessary paperwork/license up-to-date, affirming the authorized sailing radius within which the vessel may operate.

Under Principle, only boats designed for private and leisure purpose can be insured and so, it excludes those used for other purposes, like commercial purposes like fishing, sports, etc.

Usually a value is determined to both the engine and the hull. Normally these values coincide with the replacement price of each item. At the time of buying an insurance policy, it is very important to remember any rigging and accessories apart from hull (unless you choose not to insure them), because the insurance provider won’t pay for the damage caused to these items, if they are not included in the policy.

Spanish Clauses and English Clauses

There is one more distinction to consider – which clauses or provisions are applied, viz. the so-called “Spanish Clauses” and “English Clauses”. No matter what is the origin of the boat, any insurance policies issued in Spain tend to get included in the Spanish Clauses. But, the English Clauses, except for a few situations, have a wider array of guarantees and were set by the Institute of Yacht Clauses of London (IYC). The main difference between the two is the English Clauses let you state the value of the boat, while in the Spanish version, the market value of the boat is declared. If it is your choice, you are always recommended to choose a policy with the English Clauses.

Damages Covered

Damages that are usually covered are: shipwreck, collision with a floating or fixed object, running around, sinking (not due to bad maintenance), storm, theft in a secure and vigil location and malicious conduct by third parties.

Among the exclusions of cover, it is worth to point out – sails torn by wind, faulty maintenance of the boat, detachment of outboard motor, purely mechanical fault of any sort, breakdowns caused by leaving the boat anchored in coves or beaches without assistance, grave negligence, etc.

In case of total loss caused by an accident/breakdown covered under the policy, the market value is reimbursed, deducting the value of any items saved which will remain with the insurer. If the accident occurs abroad, the insured can contact one of the Loss Adjusting bodies (named Comisarios de Averias – adjusters of the Transport & Boat Branch) who will do the evaluation of the loss and forward the information to the insurance company.

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