Insurance Condition Reports
Posted by Mike Lanigan on 22nd Apr 2024
My insurance company wants me to get an insurance condition report done for my boat......Why?
This is a common question we get quite often. Your insurance company, who you have been with for years, suddenly wants you to get a condition report done on your trailer boat. Why do they need it? Why now?
Back in the "good" old days, it was quite an easy process to buy an old boat, insure it for more than you paid for it, then send it to the bottom of the river and collect a small profit on the payout. Illegal, yes. Wrong, also yes. But it happened enough for most of the marine insurance companies to introduce the condition report system. The condition report allows the insurer to not only get a baseline of the condition on a boat you have just purchased, but also keep an eye on the ongoing condition of the boat. They want this info to make sure the boat isn't damaged, deteriorating, been badly modified or isn't being looked after. They want to know about any issues that may affect a claim before you make the claim. Its good business sense for insurers, especially for small boats where the condition can vary wildly.
Generally, the marine insurer will contact you to get a condition report once your boat clicks over 20 years of age and then again every 4 years. They don't pay for the condition report, its the owners responsibility. They can also ask for a condition report to be completed when you buy an older boat and want to insure it with them. This is so they know what the boat is like before they insure it.
Many boat owners see this as unnecessary and a waste of time, which is true in a lot of cases because they love their boat and take extremely good care of it. But some owners don't put as much effort in and they are the ones the insurance company is keen to check on.
So what if you are one of those fastidious owners whose boat has clicked over 20 years and has prompted a letter from your insurance company to get a condition report done? You probably think its a waste of time as you love your boat and treat it like your baby.....well, there are some added benefits in getting the report done other than keeping your insurance cover up to date. Here at Boat Check WA, we often do insurance condition reports on boats that are in amazing condition, but we still find small faults and things that are heading towards being a larger fault. Things like bungs where the sealant is failing, wiring issues, loose fittings and fixtures.....all small things that many boat owners never notice, that can cause major issues if not fixed. We recently checked a boat that looked immaculate, but had loose, poorly fitted SS cleats that the owner had never used, as his boat was on a trailer. He was in the process of switching to a pen, which meant he would need to use the cleats.....but when we checked the boat for his insurance company, we found the cleats to be slightly loose and fitted with nuts only on the inside....no washers....on a fibreglass boat. First night in the pen with a bit of wind would have probably seen one or more of those cleats tear clean out of the boat.
So in summary, the condition report is important for the insurance company to monitor the asset they are insuring, but its also important for the boat owner as it allows them to see the small issues that they hadn't themselves, which can save a lot of grief and heartache in the future. Think of it as an expert, independent eye letting you know what your boat is like and how its going. Having it checked regularly can actually save you from expensive, unseen repairs in the future.
Boat Check WA conducts insurance condition reports across Perth from Two Rocks to Mandurah. We are independent and don't offer mechanical repairs, so we aren't going to pick the hell out of your boat and exaggerate issue to get the lucrative repair job. We just do the inspection fairly and sensibly. If something doesn't need attention, we wont try to make it into a big deal to get the job. That's our promise.
Boat Check WA
Mobile trailer boat inspections and HIN's
Two Rocks to Mandurah
email: info@boatcheckwa.com.au
phone/SMS: 0439 942 975