Marine insurance: cruising limits, agreed value, winter storage
Spanish law requires third-party liability cover. A full policy adds hull cover, set by agreed or market value, a cruising area and a rule for winter storage.
Updated 3 min read
Key points
- Third-party liability insurance is compulsory for recreational motor boats and for non-motor boats over 6 m (Royal Decree 607/1999).
- Agreed value pays a sum fixed at the start. Market value pays what the boat is worth at the time of loss.
- Cruising limits, named skippers and lay-up conditions decide whether a claim pays.
The legal minimum
Royal Decree 607/1999 requires third-party liability insurance for recreational boats: motor boats, and non-motor boats over 6 m in length. It covers damage the boat causes to other people, ports and installations. Sailing without it is a serious infringement, and marinas ask to see the policy. Your policy must run with the boat's registration and flag.
Beyond the minimum
Most owners also insure the boat itself against loss and damage: fire, collision, grounding, theft, storm, and often the tender, sails and engines. A lender will require it. See Financing a yacht in Europe: marine mortgages and leasing.
Agreed value or market value
- Agreed value. You and the insurer fix the insured sum at the start. On a total loss the insurer pays that sum. It suits a boat with a clear value and a recent survey.
- Market value. The insurer pays what the boat is worth when the loss happens, which may be lower than what you paid. A cheaper premium can reflect this.
Cruising limits
A policy names the waters in which it covers you. A typical limit is the Western Mediterranean, and passages outside it need an extension. Check how the policy treats Corsica, Sardinia, the Balearics, the Tyrrhenian and the Adriatic. A claim in waters outside the named area can be refused.
Skipper and crew conditions
Some policies name who may skipper the boat or ask for a minimum licence or sea experience. A claim under a clause you breached may be declined. See Skipper licences in Spain: PNB, PER, Patrón and Capitán de Yate, and foreign licence recognition.
Winter storage
If the boat is laid up ashore or in a boatyard for the winter, many insurers offer a lower premium with conditions: how the boat is stored, who inspects it, and what is removed. See The off-season (invernaje): in the water or on the hard. Tell the insurer in advance, and keep a record of the checks.
Questions to ask three insurers
- Is the cover agreed value or market value?
- What is the cruising area, and what does an extension cost?
- What are the licence and experience conditions?
- What is the excess for each type of claim?
- What are the lay-up conditions?
- Does the policy accept the boat's flag and my residence?
Related guides
General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.