Boat Engine Seizure: Is Insurance Coverage Available?

Boat insurance is designed to protect boat owners from financial losses resulting from various types of damage or loss. One of the most common types of damage that boat owners experience is a blown engine, which can be costly to repair or replace. While boat insurance may cover a blown engine, it depends on the cause of the damage and the type of insurance policy held. For example, if the damage is due to a collision or severe weather, comprehensive or collision coverage may pay for repairs or replacement. However, if the damage is due to wear and tear, negligence, or lack of maintenance, it is unlikely to be covered.

Collision damage coverage

Collision coverage specifically pertains to damage caused by impact with another vessel or object, whether submerged or not. This includes collisions with docks, piers, and other boats. If your boat capsizes, collision coverage can also provide financial assistance. This coverage is essential to protect yourself from the potentially high costs of repairing or replacing your boat following a collision.

The extent of collision coverage can vary depending on your policy. In general, it covers the furnishings, fittings, motors, anchors, fuel tanks, batteries, and onboard safety equipment of your boat. Additionally, collision coverage can provide protection for injuries sustained by your passengers or pets during a collision. This aspect of the coverage ensures that medical bills resulting from a collision can be covered up to the limits of your policy.

When purchasing boat insurance, it is important to carefully review the collision coverage offered. The specifics of what is included and excluded can vary among insurance providers. By understanding the details of your policy, you can ensure that you have adequate protection in the event of a collision. It is also worth noting that collision coverage typically comes with a deductible, which is the amount you must pay out of pocket before the insurance company covers the remaining costs.

In summary, collision damage coverage is a crucial aspect of boat insurance, providing financial protection for repairs or replacements after a collision. By understanding the specifics of your policy and the extent of coverage offered, you can ensure that you are adequately prepared for any unforeseen incidents on the water.

Comprehensive damage coverage

Comprehensive coverage is an optional add-on to your boat insurance policy that can pay to repair or replace your watercraft if it is damaged due to a covered incident outside of your control. Comprehensive coverage is often bundled with collision coverage, which protects your boat in the event of a collision with another boat or object. Comprehensive and collision coverage are not required by state law but are generally required by lenders if you are financing your boat or keeping it at a marina.

Comprehensive coverage protects your watercraft from unexpected events outside of your control, such as:

• Theft
• Vandalism
• Explosions
• Fire
• Falling trees and objects
• Hurricanes
• Lightning
• Other weather-related issues

Additionally, comprehensive coverage may also cover related damage, such as fuel spills and wreckage removal in the event your boat sinks. Depending on your policy, comprehensive coverage may also include:

• Full replacement cost: Restoring your boat to its pre-damaged condition without accounting for depreciation.
• Wreckage removal: Covering the cost to remove your boat if it sinks due to a covered event, such as a severe storm.

It is important to note that comprehensive coverage does not include damage from general wear and tear, gradual weathering, or deterioration. Additionally, damage caused by animals or marine life is typically not covered under comprehensive coverage.

Engine damage causes

There are several reasons why a boat engine might fail or get damaged. Here are some of the most common causes:

Fuel Starvation

The introduction of bio-based diesel has led to an increase in blockages in fuel systems due to the "diesel bug". This is an organism that lives in the water-fuel interface at the bottom of a tank and can get sucked into the fuel lines, causing clogging. Water from condensation collects at the bottom of the tank, and the new biodiesel formulas retain microscopic water molecules, exacerbating the problem.

Overheating

Overheating is often caused by a clogged raw water filter or a faulty impeller. The impeller is made of flexible rubber, and older blades can crack or break off, with the broken pieces getting sucked into the heat exchanger. Overheating can also be caused by long pieces of stringy weed getting drawn into the intakes and blocking the outlet.

Failing Electrics

Electrical issues are a significant cause of engine breakdowns. Common problems include a faulty battery master switch or changeover version, complex wiring in modern yachts, batteries being drained too far, incorrectly installed solar panels, and old batteries.

Corrosion

Corrosion on boats, especially those sailed or driven in coastal areas, can impact engines by degrading fuel lines, detachable filters, and other service items. It can also affect ancillaries such as stern gear, trim tab rams, and control cables.

Lack of Maintenance

Inadequate maintenance is a common issue that can lead to engine damage. This includes not performing routine inspections, failing to change oil, neglecting to keep debris clear from the prop, and not storing the boat properly during winter.

Wear and Tear

Normal wear and tear over time can cause engine damage. This is typically not covered by insurance. However, you can add mechanical breakdown coverage to your policy, which will help replace engine parts that break down due to age.

Wear and tear exclusions

Boat insurance policies generally exclude coverage for damage resulting from a lack of maintenance or expected upkeep. This includes issues that arise due to corrosion, loose connections, failed ignition switches, and transmission problems. These problems can often be prevented through routine inspections and maintenance. Therefore, insurance companies consider the failure to perform such maintenance as the boat owner's responsibility.

In addition to wear and tear exclusions, boat insurance policies typically do not cover damage caused by insects, animals, or mold. It is important for boat owners to regularly clean, drain, and dry their boat equipment to prevent infestations and mold.

Basic boat insurance policies also typically exclude coverage for machinery or parts that need repair or replacement due to deterioration, lack of maintenance, improper use, or mechanical and production defects. However, if the machinery is damaged by a covered peril, such as a collision or storm, it may still be covered under the policy.

It is important for boat owners to carefully review their insurance policies to understand the specific exclusions and limitations. By understanding these provisions, boat owners can take the necessary steps to maintain their vessels and avoid unexpected costs.

Claim processes

While it is important to refer to your specific insurance policy, boat insurance may cover a seized engine if the problem was unrelated to a lack of maintenance or expected upkeep on your part. If your boat insurance policy covers the value of your boat, your insurer will likely protect your boat and its components, like your engine, from unexpected forms of damage.

Step 1: Reporting the Claim

Report your claim to your insurance company as soon as possible. Call your insurance company's claim department—the phone number is typically on your insurance card or the provider's website. It is important to understand your boat insurance coverage to avoid surprises.

Step 2: Documentation and Evidence

Thoroughly document all pertinent details following a boating accident or any other incident that necessitates the submission of a claim. Capture as much information as possible, including photographs, service records, and maintenance logs, to ensure accurate and comprehensive reporting. If other boats are involved, get the owner's contact and insurance information, and document the state of their watercraft. Save any damage estimates, medical bills, and police reports.

Step 3: Evaluation and Assessment

Your insurance company will inspect the level of damage your watercraft has sustained. This may include photographs, repair visits, or in-person viewings. Provide as much relevant information as possible throughout the claim process. Your adjuster will work with you to ensure you get the compensation and/or repairs you need, as long as they fit within your pre-chosen boat insurance coverage.

Step 4: Repair and Restoration

Choose a repair shop or contractor to fix your boat. This individual or team will continue working with your insurance company to ensure adequate payouts.

Step 5: Receiving the Claim Settlement

If your claim is approved, you will receive the settlement in the mail. The amount communicated beforehand will cover repairs, medical bills, and other relevant expenses.

Additional Tips:

• Consult with a marine insurance specialist, as marine insurance claims have their particularities.
• If your engine failure is due to a manufacturer or mechanical defect, check your policy. Basic boat insurance policies usually don't cover defects, but top-of-the-line protection might.
• If your engine failure is due to negligence or lack of maintenance, your insurer will likely not cover the costs.
• If your engine has given out near the end of its lifespan, your insurer may not cover the cost of a new one, as wear and tear is typically not covered.
• If your engine damage is due to mold or insects, it is unlikely to be covered.
• If your engine has seized due to a collision with a submerged object, review your policy to understand the coverage limits or deductibles for this type of damage.

Frequently asked questions