How does marine salvage work if someone rescues my boat?

Salvage is a recognised concept in maritime law, and the salvage convention is incorporated into New Zealand law through the Maritime Transport Act 1994. A person who voluntarily saves a vessel or property in danger at sea may be entitled to a reward, which is assessed according to factors such as the value of the property saved, the skill and effort of the salvors, the danger involved and the time and expenses incurred. The amount is not simply a matter of what the salvor demands, and it can be negotiated or determined by the court or an arbitrator. Do not sign a salvage agreement without understanding the terms, and ask for the terms in writing. Contact your insurer immediately, as your policy may cover salvage costs, and take legal advice if the demand is unreasonable.