Marine FAQS

Basic Types of  Marine Insurance

Marine Insurance, covering ships and voyages, is one of the oldest forms of insurance that originated in ancient times with loans to ship owners that were repayable only on the safe completion of the voyage and was formalized in Medieval Europe.

The basic types of Marine Insurance  are:

Cargo Insurance
Boat And Yacht Insurance

Yacht Insurance Differences.

Yacht insurance has its origins in the wider marine insurance market covering cargo and marine craft large and small. Yacht insurance works in a different way to your regular coverage while still providing similar protection for you and your yacht as your car or home insurance does.

The insurance  risks your yacht represents are assessed by considering :

  • The value of your yacht depending on its condition and desirability. In the event of a claim, the insurer will not pay more than the value of the yacht
  • Where you intend to sail it – some waters present higher yacht insurance risks such as war risks. Some countries require more yacht insurance cover for third parties etc.
  • Your experience as a skipper and your previous yacht insurance claims
  • The use you intend to make of the yacht – for example, do you need yacht insurance for racing or chartering
Am I required by law  to insure my boat?

Most boat owners will want ‘all risks’ insurance which gives much wider protection. However, yacht insurance is not a legal requirement in the same way that motor insurance is. The minimum boat insurance required for using most marinas, harbours, recognised mooring areas is third party insurance

What amount of insurance coverage do I need on my boat?

Your boat should be insured for the current market value. If it is a new purchase, the purchase price can be used to determine an insured value.If there is any uncertainty, no market transactions available  to base market value on for example, KIA may ask for an independent valuation.

What  does a marine insurance policy generally cover?

KIA’s ‘all risks’ yacht insurance policy covers you against accidental loss or damage:-

to: while: because of:
  • you
  • your passengers
  • your yacht
  • gear, personal effects, dinghies, trailers and personal watercraft by special arrangement
  • third parties
  • cruising
  • moored
  • laid up
  • in store
  • in tow
  • racing by special arrangement
  • towing waterskiers, by special arrangement
  • external accident
  • grounding
  • water coming into the boat
  • theft
  • malicious damage
  • fire


What typically does a marine insurance policy not cover?

Always check carefully that any insurance quote you are given covers all the risks against which you seek to protect yourself. Normally excluded from yacht insurance cover are gradual deterioration, wear and tear depreciation, gradual breakdown, corrosion or electrolysis, deliberate negligence and accidents while under the influence of drugs or alcohol.

Does my name have to be on the title to purchase a boat insurance policy?

Yes. Only a title owner of the boat can purchase a boat insurance policy. If the boat is not insured in the name of the title owner then no coverage is on the boat.

Do I need a marine survey. How often is it required?

A marine survey is not required for new vessels.On vessels that are not new , KIA requires a survey to determine the boat’s condition and value.. After the original survey, an updated survey will be required every 7 years.

Is racing covered ?

Normally it is not covered.Racing risk coverage is usually available for an additional premium.

Is anyone I give permission to drive my boat covered?

 The general answer is anyone you give permission to use the boat is covered. The exceptions to this are marine professional personnel and if the boat insurance policy has a Named Operator endorsement. With a Named Operator endorsement only operators listed can operate the boat. Named Operator endorsements are common on performance boats.

If I use my boat in fishing tournaments. Am I covered under your policy?

 Yes.  Our insurance policies cover tournament fishing . The boat must be used for pleasure and can not be used to carry passengers for a fee or any other business activity. Collecting prize money from a tournament is allowed.

What does boat insurance cost?

There are many items that affect the cost of boat insurance, the location of the boat, the experience of the operator, the size and type of the boat, and the use of the boat, so that is a difficult question to answer. Use our Basic Marine Quote Form to get an idea of the cost of boat insurance.

During a lay-up period is my boat covered ?

Yes. It is fully covered, but the vessel must be out of commission (in dry dock for example) . It can not be operated and can not be used as a live aboard.

If my boat is stolen during a lay-up period what happens?

Your boat is fully covered if it is stolen during a lay-up period.

Is my dinghy or RIB covered?

You will need separate cover for your RIB or dinghy. KIA’s all risks RIB  insurance policy is very beneficial to RIB owners. It can cover the following:

  • theft of the RIB
  • trailer cover
  • cover while in inland transit across ANU
  • personal accident cover
  • personal accident for waterskiers up to US  $1 m
  • third party liability up to US $4 m
  • third party liability only as an option.

What is the difference between Actual Cash Value and Agreed Value ?

When a claim is settled on an Actual Cash Value basis this means that the Insurance Company will apply full deduction for depreciation.

Agreed Value means the Insurance Company will pay you the agreed upon insured value should you suffer a total loss to your vessel. No depreciation is taken.

Is my boat covered for transit by road ?

Any bodily injury or property damage to a third party caused by the trailer or boat is covered by the liability on the automobile. Loss or damage to the boat is covered for boats less than 30 feet in length. If your boat is longer than 30 feet, and you let us know in advance, we can cover the yacht while in transit as long as it is being moved by a professional transportation company using purpose built trailers.

Can I purchase an Actual Cash Value policy?

In some situations yes, mainly for older boats or for special policies like performance boats. KIA usually recommends agreed value policies .

Can the boat  be insured for more than the purchase price?

Only if  additional equipment has been added or if the vessel has been refitted. We offer an  Agreed Value coverage for the amount that the vessel is insured for in the event of a total loss.

If I move my boat to another location what happens ?

KIA needs to know that you have moved your boat. If you stay within your stated navigation territory most times we can change the policy to the new location and no money will be required. If you move the boat to a new navigation territory, there may be an additional premium based on the new navigational area.

Are all KIA’s boat insurance policies valid for 12 months?

Yes. All our boat insurance policies are for 12 months.

If I pay with an electronic check or a credit card, when does the amount get processed?

KIA will process your request the  same day if received during business hours. Any other requests will be processed the next business day.

Are there navigation limits?

Yes. All our boat insurance policies have a navigational territory. You must stay within the navigational territory to remain covered.  Cover for travel outside the navigation territory is possible if you obtain an endorsement providing permission from KIA.

Is coverage available for my boat if I charter it?

Yes. KIA can provid insurance coverage for Occasional Charter and Full Charter operations.

What should be included in the purchase price?

The boat, motors and any additional equipment, like electronics. The trailer and dinghy will have their own stated value and should not be included in the purchase price.

What happens if I pay my premium after its renewal date?

If you are already insured by KIA, we will send you a renewal quotation at least 21 days before your Policy expires. To ensure cover is continued, you must pay the premium to KIA within 15 days from the renewal date.
Should you fail to pay the premium by the due date, you will be
given a  notice of cancellation and the insurance cover may be cancelled automatically .



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