A laying-up policy freeing the owner of all risks during the winter months should cost 6s. 8d. or about that sum, for a policy worth 350l. This policy will cover risks from fire, falling over, and all such accidents as may take place whilst a yacht is hauled up in a yard or elsewhere.
A laying-up policy to cover the winter months ought to be obtained at the rate of 2s. 6d. to 5s. for a like policy of 350l. This policy will cover all risks that may be incurred by a yacht laid up, dismantled, and left at her moorings, such as from fire, dragging ashore, being run into, &c.
Of course insurances differ as to the amount of premium to be paid according to the age of the yacht, her size, and the amount of the policy. Thus for a 100l. policy on an old worn-out 5-tonner, to cover summer sailing risks, as much as 5 per cent. has been paid, while for a 150l. policy for an old but well-kept-up yacht of a similar tonnage, 50s. has been the premium covering the five summer months.
In conclusion, it may be as well to mention that on no account is it a wise plan for the yacht-owner to insure his vessel for a less amount than her full value, including gear, furniture, such valuables as he keeps on board, stores, &c. There are times when, a yacht having suffered partial disablement, the underwriters may propose a composition, owing to there having been no fixed expense incurred in carrying out the repairs. Should a certain sum be agreed upon, and the owner happen to have only insured for a portion of the yacht's true value, whatever ratio that portion bears to the actual value, as laid down by him to the agents, will be deducted from the sum given as compensation. For instance, a friend of the writer insured his small yacht for 200l., her true value as given in by him at the time to Lloyd's agent being 250l. During the season, owing to a heavy gale of wind, she dragged her anchor, and, no one being on board, was picked up out at sea by a fishing-boat and towed back a derelict. The owner agreed to accept 25l. in compensation for the expenses incurred; but he was astonished when the amount handed over to him only proved to be 20l. On going into the matter, he was told that he had undertaken a fifth part of the risk on the yacht himself, in that he had insured for 200l., the yacht's real worth being 250l., and therefore he would have to bear a fifth part of the expense; and since he had agreed that 25l. was sufficient compensation, so the underwriters could only be liable to the amount of 20l. The case was brought into court and judgment given in favour of the underwriters. The yachting clauses described above are inserted on the usual Marine policy form, and the yacht insurer cannot do better than have the clauses as given in this chapter inserted in any policy form he may accept.
Attempts have been made from time to time to launch a Mutual Yacht Insurance Company, by which yachtsmen would be able to undertake their own risks by mutual co-operation and without reference to Lloyd's; but there are points, where a system of mutual insurance may benefit householders, who may be said to be localised, which would create difficulties almost sufficient to prevent any general Mutual Yacht Insurance from covering its expenses. The changes that occur in yacht-ownership are very many and frequent, and it must be often the case, that when a yacht-owner ceases to be such, any interest he may have had in a Mutual Insurance Company would have to cease too. Such changes rarely take place among the members of a Mutual House Insurance Company, and it thrives accordingly; but the constant shift of ownership, which may be seen annually by anyone who will take the trouble to study the 'Yacht List,' would surely prove a serious drawback to a Mutual Yacht Insurance Company.
In localities like the Clyde, however, where a yacht is almost as great a necessity as the possession of a stone frigate (house ashore), there seems no reason why Mutual Insurance among the local yacht-owners should not do well and prove a most successful undertaking; but then great judgment would have to be exercised as to the kind of risks such a company should incur, and many would have to be excluded, which Lloyd's agents up to the present time have been very willing to accept, such as the insurance of all yachts whose crews do not live on board while in commission, and the like. If the above remarks prove of use as well as interesting to yacht-owners, it must in justice be said that the writer is much indebted for the kindly help given him by his friend Mr. York, the secretary of the Royal Clyde Yacht Club, when compiling the information given.
INDEX TO THE FIRST VOLUME
Accommodation in a yacht defined, [363]
'Active,' used by Froude in experimenting on the resistance of ships through water, [86]