ADAC Watersports Insurance: Cover, Costs, and Alternatives at a Glance

Anyone who owns a boat or regularly charters a yacht will quickly come across ADAC’s offering when looking for watersports insurance. But which of the three policies is meant for which purpose? What exactly is covered? And what should you watch out for when comparing ADAC’s offering with other boat and watersports insurance providers?

We took a closer look at the currently published product information and policy wordings.

What is ADAC watersports insurance?

Under the term ADAC watersports insurance, ADAC groups together three different insurance products. These can be taken out independently of one another.

This means the offering is aimed both at owners of their own boat and at people who exclusively charter.

What does ADAC watersports liability cover?

ADAC watersports liability protects boat owners against statutory liability claims when other people or third-party property are harmed through the use of their insured boat.

According to the currently published information, sums insured of up to €15 million are available for personal injury and property damage. For financial loss, up to €250,000 is stated. Lower maximum limits apply to claims under US or Canadian law.

Cover includes, among other things:

• Personal injury, property damage, and financial loss
• certain damage to rented storage spaces and jetties
• a bad-debt cover element
• certain tenders
• certain watersports equipment and diving gear
• certain water pollution damage
• a boat trailer not subject to registration
• security deposits abroad up to €50,000

Of interest to boat owners who occasionally charter: a chartered watercraft can also be co-insured for up to four weeks per policy year if various conditions are met. Among other things, it must match the insured boat in terms of motor or sailing type, and limits apply to engine power or sail area.

Which boats can be problematic for ADAC watersports liability?

Not every watercraft can be insured under the standard rate.

According to the published underwriting guidelines, excluded risks include, for example, boats registered abroad, boats over 50 years old at the time the contract is taken out, and commercially used or chartered-out boats. Various types of craft such as jet skis, houseboats, certain racing boats, or hovercraft are also listed.

What does ADAC watersports hull cover include?

Unlike liability cover, ADAC watersports hull insurance protects your own boat – comparable hull insurance is also offered by other specialised insurers.

ADAC describes the hull cover as protection against all risks, unless expressly excluded or limited in the terms. This includes, for example, damage from accidents, grounding, capsizing, fire, lightning strikes, explosion, and theft.

The published scope of cover includes, among other things:

For wreck removal costs, ADAC states an additional benefit up to the hull sum insured, but at least up to €1 million, provided the conditions of the policy are met. Towing costs in a technical emergency situation are covered up to €3,000 according to the published terms.

Is ADAC hull cover an all-risks policy?

In principle, ADAC describes the hull cover as an all-risks policy. Even so, "all risks" does not mean that every conceivable type of damage is covered.

The hull cover terms currently linked by ADAC contain, for example, separate provisions for machinery, sails, and equipment, as well as various exclusions. Operational damage to the machinery, or damage from normal wear and certain maintenance shortcomings, are limited or excluded there, for example.

This is exactly why, with boat insurance, you shouldn’t rely solely on the label "all-risks cover" but should compare the actual terms and conditions.

Fixed value at ADAC: why a closer look pays off

In the terms of the ADAC watersports hull cover, the sum insured is explicitly described as an "agreed fixed value under Section 76 VVG". At first glance, this sounds as if the sum insured agreed in the contract is guaranteed in the event of a total loss. However, the rule is not quite that clear-cut.

The reason lies in Section 76 of the German Insurance Contract Act (VVG). Under this provision, an agreed fixed value generally applies as the value of the insured item in the event of a claim. However, the law contains an important limitation: if the agreed fixed value significantly exceeds the actual insured value at the time of the loss, the actual value can become decisive.

An "agreed fixed value under Section 76 VVG" therefore does not automatically mean that, in the event of a total loss, the originally agreed sum insured will be paid out under all circumstances.

What does this mean in practice?

Suppose a sum insured of €150,000 was agreed for a yacht. A few years later, a total loss occurs.

If the actual insured value of the yacht at that point is significantly lower, a fixed value based solely on Section 76 VVG can in principle be challenged. The agreed €150,000 is then not necessarily guaranteed as the payout in every case.

For ADAC watersports hull cover, this point is particularly relevant because the terms generally define the current market value as the insured value. Only for certain watercraft no more than five years old is the replacement value used, subject to additional conditions. At the same time, the sum insured is meant to correspond to the respective insured value.

There are more far-reaching provisions on the market

Some specialised boat and yacht insurers structure the fixed value more favourably for customers and expressly exclude such objections.

Schomacker, for example, describes the sum insured agreed in the policy as an "incontestable fixed value". The terms also exclude the objection of underinsurance.

Pantaenius likewise describes its fixed value as binding and explicitly states that the agreed sum insured cannot be contested in the event of a total loss and is paid out without deductions.

Other policy wordings go further too: Firmenich, for example, expressly excludes both the objection of underinsurance and overinsurance under Section 76 VVG. In the event of a total loss, according to the published terms, the agreed sum insured is paid out less any achievable residual value.

The difference is decisive in the event of a total loss

For boat owners, this difference is especially relevant in the event of a total loss. An insurer can therefore advertise a "fixed value" even though its specific design is less far-reaching than a policy with an explicitly incontestable fixed value.

That’s why NauticAssure compares more than just the term "fixed value"

In the NauticAssure comparison, we don’t just look at whether an insurer offers a fixed value, but also at how it is structured in the respective policy wording.

This allows boat owners to see which rates provide for a more far-reaching rule and which offers protect the agreed sum insured particularly comprehensively in the event of a total loss.

Especially for high-value boats and yachts, this difference can amount to tens of thousands of euros in the event of a claim.

What is ADAC skipper and crew liability?

ADAC skipper and crew liability is aimed at people who skipper someone else’s boat or a charter yacht – a comparable standalone skipper liability cover is also offered by other insurers.

According to ADAC, it applies worldwide to chartered or borrowed boats. The number and duration of trips per policy year is not limited. Co-insured persons include the skipper, crew members, and guests on board with the skipper’s consent.

ADAC states a sum insured of up to €10 million for personal injury and property damage, including €250,000 for financial loss. Restrictions apply for the USA and Canada.

Further published benefits include, for example:

• liability claims between certain insured persons
• charter cancellation costs
• security deposits abroad
• certain water pollution damage
• damage to the chartered boat caused by gross negligence
• an optional charter deposit cover

That last point in particular deserves a closer look.

Is damage to the charter yacht covered by ADAC skipper liability?

Partly. The published terms explicitly distinguish between ordinary and gross negligence.

For damage to a chartered or borrowed boat caused by gross negligence, cover of up to €500,000 per claim and policy year is stated. An excess of €2,500 applies, in addition to any deposit agreed with the charter company.

Damage to the charter boat resulting merely from ordinary negligence, however, is not covered under this element according to these terms.

This is a good example of why comparing skipper liability policies should go beyond the sum insured alone.

Important questions include, for example:

• When is damage to the charter yacht covered?
• How high is the excess?
• Must another insurance pay out first?
• How are gross negligence and recourse claims handled?
• How much is covered for charter cancellation?

Is charter deposit insurance included with ADAC?

A charter deposit cover can be added to the skipper and crew liability policy at ADAC as an option. It is therefore not automatically part of every skipper liability policy.

Deposit insurance also serves a different purpose than skipper liability:

• Skipper liability: protects against certain liability claims.
• Charter deposit insurance: protects the deposit held by the charter company in the event of insured damage to the charter boat.

Anyone chartering a yacht should therefore consider these two risks separately.

What does ADAC watersports insurance cost?

The cost depends on which insurance is chosen and which risk is to be covered.

For boat liability, factors such as engine power or sail area and the sum insured play a role. For hull cover, the boat’s value, the excess, and the cruising area are also relevant.

ADAC offers an individual online calculation for this.

For a reliable price comparison, an up-to-date individual quote should always be obtained – for example in the NauticAssure comparison calculator, which puts rates from several insurers side by side.

Do ADAC members get a discount on watersports insurance?

Yes. ADAC members currently receive a 10% discount on the base premium for watersports insurance.

For the watersports hull cover, ADAC also states an additional special discount of 10% if the insured boat is registered in the ADAC boat register for the International Certificate for Pleasure Craft ("IBS"). A no-claims discount can also be applied to the hull cover.

However, ADAC membership is not required to take out the policy.

Can you take out ADAC watersports insurance without membership?

Yes. According to ADAC, both members and non-members can take out watersports insurance.

However, the respective offers require a German residence. For watersports liability, ADAC also requires the boat to be registered or licensed in Germany.

Who is actually the insurer behind ADAC watersports insurance?

The insurer for the watersports insurance policies offered is currently AIG Europe S.A., Direktion für Deutschland (German branch).

ADAC Versicherung AG is the intermediary arranging the insurance contract.

In other words: the brand and the arrangement of the policy go through ADAC, but the insured risk is actually carried by AIG.

This distinction is also relevant when comparing other watersports insurance products. A different risk carrier can stand behind a product name or a well-known brand.

Comparing ADAC watersports insurance: what matters?

Whether a rate suits your own boat or your own trip cannot be judged on premium alone.

For boat liability, the sum insured, geographical scope, water pollution cover, tenders, proof required abroad, and special risks are particularly relevant.

For boat hull cover, it’s also worth taking a close look at:

• the nature and design of the all-risks cover
• the fixed agreed value and sum insured
• the "new for old" deduction
• machinery damage
• gross negligence
• grounding and inspection costs
• wreck removal
• salvage and towing costs
• personal belongings
• regattas
• cruising area
• excess

And for skipper liability, damage to the charter yacht, recourse claims, crew liability, charter cancellation, security deposits abroad, and excesses are especially relevant.

ADAC is one possible option on the market – but not the only one.

NauticAssure, for example, compares boat and watersports insurance from various specialised providers. The current boat insurance comparison page features providers including Pantaenius, Gothaer, Yacht-Pool, Schomacker, and Sealogy.

Cancelling ADAC watersports insurance: what notice period applies?

According to ADAC’s current information, the minimum contract term is one year.

The contract automatically renews for a further year unless cancelled in text form at least three months before expiry.

Separate rules apply if the insured boat is sold.

Summary

ADAC watersports insurance covers the most important risks around a boat with liability, hull, and skipper liability cover, but it doesn’t replace a close look at the details: the fixed agreed value, gross negligence, exclusions, and the excess determine what is actually paid out in the event of a claim. An independent comparison with specialised watersports insurers shows whether the ADAC rate or another provider is the better fit for your boat or your trip.