Hull & Machinery Cover

Protection for your boat's hull, engine and on-board mechanical systems.

Hull and machinery cover is the foundation of any comprehensive boat insurance policy. It protects the physical structure of your vessel — the hull, deck, superstructure — as well as the engine, drive systems, and all permanently installed mechanical equipment. Whether your vessel suffers collision damage, grounding, storm damage, or mechanical breakdown, hull and machinery cover ensures you're not left paying for costly repairs out of pocket.

Key Coverage Points

Accidental damage to hull, deck and superstructure
Engine and gearbox damage
Grounding and collision with submerged objects
Storm, hail and flood damage
Fire and explosion
Capsizing and sinking
On-board electronics and navigation equipment
Agreed or market value options

Hull & Machinery Insurance: The Core of Your Boat Cover

Hull and machinery cover — often called H&M cover in marine insurance terminology — is the primary layer of protection for any insured vessel. It covers the vessel itself: the hull structure, deck, superstructure, masts and rigging (for sailing vessels), plus all permanently installed machinery including engines, propulsion systems, generators, steering gear and on-board mechanical equipment.

How Claims Are Settled

When a hull and machinery claim is made, the insurer will typically appoint a licensed marine surveyor to assess the damage and the cost of repair. For partial losses (repairable damage), the insurer pays the reasonable cost of repair less the policy excess. For total losses, the insurer pays either the agreed value or the current market value, depending on which basis of cover applies.

Agreed Value vs Market Value: Why It Matters

The difference between agreed and market value can be substantial. Consider a ski boat purchased for R500,000 five years ago, now with a market value of R350,000. Under a market value policy, a total loss claim would yield only R350,000 — potentially insufficient to purchase a comparable replacement given new boat price inflation. Under an agreed value policy, the full insured amount is paid, enabling a true like-for-like replacement.

Navigation Area and Hull Cover

Hull cover is geographically limited by your policy's navigation limits. Operating outside your declared navigation area may invalidate your cover. If you plan to extend your cruising beyond your standard area — for example, taking your vessel to Mozambique — notify your insurer in advance to arrange a temporary extension.

Wreck Removal and Pollution Liability

Some hull policies include wreck removal cover — the cost of raising and removing your vessel if it sinks in a navigable waterway. This is important because authorities may require wreck removal at the owner's expense regardless of insurance status. Pollution liability (fuel spills) may also be included or available as an extension — particularly important for vessels with large fuel tanks.

FAQs: Hull & Machinery Cover

What is the difference between agreed value and market value for hull cover?

Agreed value pays the full insured amount in a total loss — with no depreciation. Market value pays what the vessel is worth at the time of loss, which decreases over time. Agreed value is recommended for most boat owners.

Is engine mechanical breakdown covered?

Sudden and unforeseen mechanical breakdown may be covered under some policies, but gradual deterioration and wear and tear are typically excluded. Check your policy wording for the specific engine breakdown provisions.

What happens if my boat is a total loss?

If your vessel is a write-off, your insurer will pay the agreed or market insured value, less any excess. With agreed value cover, you receive the full sum insured with no depreciation deduction.

Does hull cover include on-board electronics?

Electronic equipment — chartplotters, GPS, fish finders, stereo systems — is typically covered under hull and machinery policies, either as standard or with a specified electronics sub-limit. High-value items should be individually listed.

Get Hull & Machinery Cover Cover

Licensed brokers will find the right policy for you.

Other Coverage Types

Get Covered Today