Renewed insurance coverage includes cyclone, named or numbered windstorm clause

[fxykty]

We renewed our Velos Global Yacht Cover insurance policy with Velos Insurance for the fourth time since owning our boat. New in the policy standard terms is the cyclone, named or numbered windstorm clause. We asked our broker about it and he said it’s a new standard clause and removing it wouldn’t change our premium.

We never asked for it and our stated cruising plan for the next year does not include staying in a cyclone season zone. I wonder if it’s been added because many of their clients are caught by Covid restrictions in cyclone zones?

Note that on our policy the deductible is 20% of the claim value, or 2% of the hull value, or the standard deductible value, whichever is the greater.

In these days of travel restrictions this is a nice to have. Anyone else seen this? Any other companies doing this?

[chrisr]

sorry to be a little dense, however can you explain what is the effect of the clause ? is it excluding cover for such storms ?

our policy with topsail included this clause this year ;

"CYCLONE RESTRICTIONS
Cover excludes all and any claims resulting from a cyclone if:
Your vessel is South of 5 degrees South and North of 25 degrees South.
Your vessel is at anchor, or on a swing mooring.
If your Vessel is outside of these latitudes and moored in a marina berth, pen or secure jetty then loss or damage resulting from a
cyclone is covered subject to the following additional terms:
a) The excess will be increased to 25% of the total claim or double the standard excess as set out in the policy, whichever the greater.
This will be subject to a minimum excess of A$10,000
b) The Excess Waiver cover (if applicable) shall not apply.
c) Marina Benefits as per Section 8 of the policy wording is deleted.
In addition you must make every effort to ensure that Your Vessel is prepared for a cyclone. In the event of a claim, We will require
documented evidence detailing the following:
- Additional ropes.
- Additional fendering.
- Removal of sails, protective covers and biminis.
- The clearing of loose deck items.
- Any other preventative measures as may be executed to ensure the safety of the craft.
Definitions:
Cyclone
A named or numbered tropical storm, hurricane, cyclone or typhoon, which has been given a name or number by the Australian
Bureau of Meteorology. Australia's official weather forecasts & weather radar - Bureau of Meteorology or any Meteorological Service.
Marina
A secure and enclosed sheltered mooring complex, providing controlled access to berths or pontoons. The marina must have a
physical breakwater which is not floating or temporary."

think all policies are now including something similar...

cheers,

[fxykty]

Originally Posted by chrisr

sorry to be a little dense, however can you explain what is the effect of the clause ? is it excluding cover for such storms ?

...

No, our policy now explicitly INCLUDES cover for damage caused by a “cyclone, named or numbered windstorm”, with deductible limits as I described. It has no travel, mooring or preparation requirements as your policy does.

As part of the renewal we told them our plan of sailing to Australia and along the east coast for the next year. The geographic area of coverage is “Australian and New Zealand waters”, which include the Tasman Sea, with no seasonal nor geographical limits.

The cyclone clause is new, perhaps added because the coverage area includes a seasonal cyclone zone?

[chrisr]

that's interesting...certainly better than our policy with topsail !. pretty difficult finding any insurance here that includes cover for TRS - irrespective of premium or excess

if you don't mind : how much is yr premium (as a percentage of insured value). ours is 0.0105%

cheers,

[fxykty]

Originally Posted by chrisr

that's interesting...certainly better than our policy with topsail !. pretty difficult finding any insurance here that includes cover for TRS - irrespective of premium or excess

if you don't mind : how much is yr premium (as a percentage of insured value). ours is 0.0105%

cheers,

Our premium is just under 1.5% of insured value. It is about double of what we were charged for coastal cruising, but same percentage-wise of what it cost in previous years for passage add-ons to the South Pacific.

[chrisr]

thanks

that's not much extra premium for a lot of extra cover. shall keep in mind for when we can finally get moving again

cheers,