Yacht insurance coverage is broader and more specialized than typical boat insurance because these larger boats tend to travel farther and possess more unique exposures. The policy cost can vary widely depending on a multitude of factors. Its physical characteristics such as age, length, value, speed, luxury features, and the condition of the yacht impact the policy cost.
Coverage for physical damage, medical payments, uninsured boats, towing, and wreckage removal will also increase your overall policy expense. In addition, owners can purchase specialized coverage for items on their yachts such as an expensive prop and insure onboard equipment like GPS units, cameras, TVs, phones, and fishing equipment.
If a yacht is used as a primary residence and in what state the owner resides can influence cost as well. Storage outside or in a covered boat house or storage shed when not in use, operation on the open sea or inland lakes, and where boaters cruise affect yacht insurance costs. For example, it usually costs less to insure a vessel operated in fresh water versus salt and if the yacht remains in storage during the winter, owners can receive deductions for seasonal layups.
The type of coverage that yacht owners purchase also affects their insurance cost. “Agreed value” policies cost more up front and cover vessels based on their value when the policy was originally written whereas “actual cash value” ones cost less, factor in depreciation, and only pay out the actual cash value of the yacht at the time it is declared a partial or total loss. Policy owners can reduce annual premiums by raising deductibles or decrease liability limits that will increase total out of pocket costs if involved in an accident.
Online tools can help you with quick and easy quotes for the yacht insurance. Typically, storage, maintenance, repairs, and equipment cost an average of 10% of a yacht’s value per year. Yachts with crew members incur additional labor and food costs. You also need to add in the cost for marina docking fees, taxes, and fuel to accurately estimate yacht expenses.
Get an estimated yacht insurance quote online today or call 800-748-0224 to speak with a yacht insurance specialist