Primary parts of yacht insurance: A comprehensive yacht insurance policy will have hull insurance and replacement cost. The hull insurance includes an agreed value as well as replacement cost on specified partial losses. There are usually exceptions as to what is covered (things like batteries or sails considered to depreciate over time).
Choose carefully: You want to be insured for liability to cover bodily injury or damage to your property or that of other people. Pay attention to what is included by actual cash value (essentially replacement cost or market value) minus any depreciation, versus agreed value (a predetermined amount). Make sure you know the kind of coverage you have opted for, so there are no surprises if you file a claim.
Take note of any extras and exclusions: Your insurance coverage may cover extras; it’s worth finding out what they are. For example, your yacht insurance may cover towing if you are stranded. You may also want longshoreman’s coverage. Alternately, it’s important to know what your policy does not cover. Normal wear and tear, damage from animals, and manufacturing defects are common exclusions.
Determine what your deductible is: If you ever need to make a claim, you’ll need to pay a deductible. They vary among policies, typically it will be one to two percent of the insured value of your yacht.
Unusual circumstances: Specialty pleasure boats often warrant specialty yacht insurance. If you have an antique yacht, classic vessel, or a luxury craft like a megayacht, consult one of our marine specialists experienced insuring vessels similar to yours.
Ask about discounts: Many yacht insurance policies offer reduced rates if the policyholder has taken specific boating courses, if the boat features particular safety features, or if the policyholder has additional policies for other watercraft. There are also sometimes discounts for hybrid or electric boats.
Do you have more questions about yacht insurance? Contact the yacht insurance professionals at Global Marine Insurance for information about your coverage options for residential or commercial boating.