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How denied boat insurance claims can be avoided

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Simple steps to keep your cover valid

Boat insurance is designed to give you peace of mind on the water, protecting you against risks like theft, accidents, and damage. However, insurance isn’t a “catch-all” safety net. If your claim doesn’t meet the terms of your policy, your insurer may refuse to pay out – leaving you facing unexpected costs.

The good news is that most claims are processed smoothly. But the small percentage that do get denied are often down to issues that could have been prevented. Understanding the common reasons claims are rejected can help you avoid costly mistakes and make sure your cover is there when you need it most.

Here are some of the reasons claims can be refused – being aware of these can help you avoid surprises and stay protected.

Poor maintenance

Insurers expect boat owners to take reasonable care of their boats, and keep them in a safe, seaworthy condition. Claims relating to rust, corrosion, rot, or general wear and tear are typically not covered, because they’re considered preventable. If your boat hasn’t been well maintained, any resulting damage may not be insurable. For example, if your bilge pump fails because it’s never been serviced, or your hull suffers from untreated corrosion, your insurer may refuse your claim.

How to avoid this:

Stick to a regular maintenance schedule.
Log all servicing, antifouling, hull checks, anode changes etc.
Keep receipts, photographs, and survey reports as proof of upkeep.

A fully comprehensive policy is not a maintenance contract. It protects you against the unexpected, not neglect.

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Expired safety certificates (BSS / Gas / Electrical)

Many policies require valid safety certification. A lapsed Boat Safety Scheme (BSS) certificate or outdated gas/electrical checks could leave your policy invalid. It is always sensible to set reminders for renewal dates, and keep copies of all certificates.

Using your boat outside agreed terms

Insurance policies are based on how, when, and where you use your boat. If you’re living aboard full-time on a leisure-only policy, using the boat commercially, or cruising outside permitted waters, you risk invalidating your cover. These factors can all make insurance more expensive but that’s because they come with additional risks. Be honest when taking out your policy and notify your insurer immediately of any changes to usage.

Undeclared modifications

Changes to your boat can significantly affect its risk profile, which means your insurance policy may need to be updated to reflect them. Whether you’re installing a bigger engine, converting the galley, fitting solar panels, adding a multi-fuel stove, or upgrading to lithium batteries, these modifications can all impact the boat’s risk profile. To ensure you’re covered, always use a qualified professional for installations, and make sure all work is compliant with current regulations. Reporting any modifications to your insurer will help to prevent complications later if you need to make a claim. In some cases – particularly with upgrades such as lithium battery systems, it may be best to speak to your insurer before work begins. They may have specific conditions that they’ll require you to comply with.

Inadequate security

Claims for theft may be denied if doors weren’t locked, windows were left open, or valuables were visible and unsecured. Insurers expect you to take reasonable precautions to deter thieves, and failing to do so may invalidate your claim. Pay close attention to the security requirements set out in your policy, particularly for high-value equipment such as outboard engines. Many insurers specify minimum security requirements, such as the use of approved outboard motor locks, wheel clamps, locks, chains, or tracking devices.

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Documenting serial numbers

If your boat is broken into and valuable equipment is stolen, being able to prove ownership and confirm the exact make, model, and serial number can speed up the claim process dramatically, and may even be a requirement by some insurers. Equipment such as outboards, electronics, dinghies and life rafts will all have individual identification numbers. Make sure you keep a record of these somewhere safe, ideally off the boat. If thieves take both the item and the paperwork, you may struggle to prove ownership – so never leave your only copy on board. Keeping the information in a document stored online in cloud storage is ideal, as it can then be easily accessed when you’re away from your boat.

Keeping a record of Bill of Sale and ownership documents off the boat

In the event of a major claim, for example for total loss or theft, insurers may ask for proof of ownership of the boat. Keep copies of Bill of Sale, surveys, and key ownership documents securely at home, or ideally digitally in a secure cloud folder. This ensures they’re not lost if the boat sinks, is damaged by fire, or is stolen, and makes it easier to evidence your claim quickly.

Gas, electrical or fuel-related incidents

Improperly fitted or poorly maintained gas, electrical and fuel systems can be a cause of accidents and claims. DIY installations can be particularly risky, and if something goes wrong, insurers may not cover the damage. To avoid this, only use qualified professionals, keep servicing and inspection records and never cut corners on electrical, fuel or gas safety.

Conditions of insurance

When you take out a policy, especially on an older boat which requires a survey, the insurer will require that any recommendations the surveyor makes are complied with. These recommendations might include things like addressing rust on the hull, skin fittings which are at risk of failure (resulting in water ingress and possible sinking), replacing perished fuel lines, or fixing gas system issues. If this repair work is completed inadequately or not at all, and results in loss or damage to your boat, it can lead to claims being rejected. Always make sure you document any repair work, and have it carried out by a competent person.

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Delayed or incomplete claims

This is the easiest and most avoidable way to have your claim denied. Failing to notify your insurer in time, not submitting enough evidence, or filling out forms incorrectly can result in delays or even rejection. Report your incident promptly, this will help you provide a detailed account and ensure you still have photos and receipts.

Alcohol or drug use

If the skipper was under the influence of alcohol or drugs at the time of the incident, insurers are very unlikely to pay out. Stay sober when operating the boat and never let anyone who’s under the influence take the wheel.

Final thoughts

When boat insurance claims are denied, it is often for preventable reasons. By staying honest with your insurer, maintaining your boat, and knowing and following the terms of your policy, you can ensure that if the worst does happen, your cover will be there when you need it most.

Need help understanding what our policy covers? Give us a call and we’d be happy to run through the details with you.

For enquiries, call us:

+44 (0)1732 223 650

For a boat insurance quote:

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Haven Knox-Johnston is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.