From cyclones, theft and arson to cable-eating rats, Tower Insurance reveals the leading causes of damage to boats, based on claims it received up to December 2022.
Tower launched boat insurance in December 2020, at the same time partnering with Coastguard to help keep even more Kiwis safe out on the water.
Claims for underwater impact damage topped the list, accounting for 44.6% of all claims. Tower Managing Director Partnerships, Jonathan Beale, says underwater impact claims are usually instances of boats hitting rocks or sandbars, but also include boats crashing into other boats.
“Recently, we’ve had claims for upwards of $80k worth of damage so, without insurance, you could be in for a nasty shock.
“With underwater impacts accounting for nearly half of all boat claims, we encourage boaties to look at insurance cover that includes third party damage so you aren’t caught out with costs to repair someone else’s boat as well as your own. This is especially important in the current inflationary environment which has seen the cost to repair or replace many assets increase.”
Coastguard New Zealand Head of Operations Rob McCaw says Tower’s claims data serves as a timely safety reminder for boaties.
“We responded to over 100 callouts in 2022 related to collisions and vessels running aground. We’re seeing ever more boats on the water, so it’s a good reminder to be watchful of other vessels while you’re out and about.”
The seasons play their part. With the advent of warmer weather and daylight savings, Coastguard saw a near 280% increase in incidents from September to October 2021, with incident numbers continuing to increase until February 2022.
To stay safe, McCaw recommends taking a Coastguard Boating Education refresher course or, for new boaties, a Day Skipper course covering all the safety basics including navigating tricky give-way scenarios.
Second boat off the ramp for most common claims is damage caused by out of water impacts, at 23.6%.
“A common scenario we see is where drivers misjudge their turns, causing the boat trailer to collide with a petrol station bollard, the corner of a building, or similar,” says Beale.
Storm damage, mainly from cyclones, is next, accounting for 7% of claims over the survey period.
“New Zealand’s marine conditions can change quickly, so it’s vital skippers double-check marine forecasts in their area – you can do this for free on the Coastguard App before heading out. If the forecast isn’t too flash, stay home. And always ensure boats on moorings or in marinas are properly secured to prevent damage,” says McCaw.
Close behind, and almost level-pegging, come claims related to theft, at 5%, and damage because of mechanical failure and breakdowns at 5.4%. Breakdowns accounted for almost a third of Coastguard callouts from June 2021 to June 2022.
Other boat claims include damage from gas leaks at 2.9%, arson at 0.8%, and even vermin infestation at 0.4%.
“Tower and Coastguard share a long history of looking out for Kiwis when the unexpected happens. While we take care of your assets on and off the water, Coastguard is there to protect the most important thing of all – you,” says Mr Beale.
Tower boat insurance customers can enjoy $30 off Coastguard individual memberships.
