10 QUESTIONS

Insurance and Paperwork

1. 01

   Is machinery breakdown always covered by hull insurance?

   No. A standard hull policy generally covers sudden and unforeseen external causes; wear, poor maintenance and fatigue arising from within are usually excluded. The distinction becomes the argument at claim time, because the insurer asks where the failure originated.

   The engine’s ECU record often settles it: a history of overheating or overspeed strengthens a maintenance-neglect argument. Which is one more reason to have that record read before you buy rather than after a claim.

2. 02

   Where is the legal line between towing, salvage and wreck removal?

   The three differ by multiples in cost. Towing is a service whose price can be agreed in advance; salvage applies to a vessel in danger and is calculated on the value saved; wreck removal is usually a legal obligation.

   This is why any assistance accepted at sea should be documented in writing at the moment it is offered, stating which of the three it is. That single sentence has decided very large sums.

3. 03

   Is loss of hire cover standard on charter boats?

   No — it is an additional cover, and without it the season’s income lost while the boat is repaired falls entirely on the owner. On a boat in charter that loss frequently exceeds the repair bill itself.

   Policy scope for commercial use therefore has to be assessed separately from private use, rather than assumed to carry across.

4. 04

   What does the general average clause cover and how does it work in practice?

   General average shares, between the parties, a sacrifice made deliberately to avert a common danger. It is rare on private yachts and common in commercial carriage. The difficult part is documenting that the sacrifice was deliberate and reasonable.

   That is why the records made at the time — log, position, weather — become disproportionately valuable afterwards. They are usually the only evidence that the decision was a considered one.

5. 05

   Why does the agreed value clause matter in a yacht policy?

   An agreed value removes the argument over worth at claim time: the parties settled the boat’s value when the policy was written. In return, that value has to rest on a document — insurers usually ask for an independent valuation report.

   Without one the value is set conservatively, and in a total loss the shortfall is paid by the owner. The valuation costs a fraction of the difference it protects.

6. 06

   Can a 1970s GRP boat be given full hull cover?

   Yes, but the insurer prices the risk by reading a report rather than by looking at the boat. On an older vessel a current survey is almost always required, and moisture values, rig age and wiring condition become the deciding factors.

   When the report comes back well, age alone stops being an obstacle. It is one of the clearest cases where a survey pays for itself in the premium.

7. 07

   How is a charter licence obtained in Turkey?

   A charter licence is not only paperwork: the boat has to clear a threshold as well. Life-saving equipment, fire systems and seaworthiness are measured against a commercial standard rather than a private one.

   A shortcoming that would pass in private use will hold up a commercial application, so a boat bought with charter in mind is surveyed to the wider scope from the start.

8. 08

   What boat licences exist in Turkey?

   The licence is determined by the purpose of use rather than by engine power: an amateur certificate suffices for private use, while commercial use brings seafarer qualifications into play. A radio operator’s certificate is a separate requirement for any boat carrying VHF.

   That distinction should be settled before price negotiation, because commercial use raises both the paperwork and the standard the boat is held to.

9. 09

   Is boat insurance compulsory, and what types are there?

   It depends on use and on the marina; most marinas require third-party cover for a berthing contract. Hull cover is not compulsory but on older boats is usually conditional on a current survey report.

   When comparing policies, the deciding factors are the deductible and the exclusions rather than the premium — two policies at the same price can offer very different protection.

10. 10

    How is boat registration handled in Turkey?

    Registration formalises the boat’s identity and ownership; an incomplete or inconsistent record causes problems both in a sale and with insurers. Where a mortgage exists, transfer cannot complete without the lender’s consent.

    This is why the records search runs on the same timetable as the physical survey. Each answers a question the other cannot, and a gap in either stops the transaction.