Unfortunately, if you don’t review your yacht insurance carefully, you could end up with coverage issues.

When you’re a recreational boater, you expect your yacht insurance will be enough to make repairs or replace your marine investment if the worst happens.

Here are some typical yacht insurance coverage issues that our insurance specialists can help you understand:

Salvage costs – In recent years we’ve had superstorms and

hurricanes, that have wreaked havoc on marinas and shorelines. If your yacht were to fall victim to these kinds of violent outbursts of nature, you might find yourself responsible for salvaging your yacht. How these salvage costs are covered varies from policy to policy, with some subtracting the salvage costs from the allotted repair budget and other policies only covering a specified percentage of the total cost. There are also options to have separate salvage coverage up to the insured value of the yacht. It’s important you know what you want and what type of coverage you currently have.

Wreck removal – Sometimes, unfortunately, there’s nothing left to salvage after a natural disaster, fire, or act of vandalism. You can’t assume that if your yacht is damaged beyond repair or sinks that your yacht insurance covers having the wreck removed and discarded properly. Find out if you would be expected to pay for this service yourself or if the wreck removal would fall under the liability coverage up to a certain amount. Again, it’s important that you make an informed decision about the type of coverage you have for your yacht so you don’t end up with a nasty shock in the event of a problem.

Environmental damage – Having your yacht damaged or sunk could have dire consequences on the environment if, for example, there is a fuel spill. Under federal law, you can be held liable for a fuel spill, and it could run you as much as $854,000. So it’s important that you know whether you are subject to a “covered loss” clause, which would mean you would have no compensation if the fuel spill was deemed to have occurred because of wear and tear or corrosion rather than an accident or mishap. Many choose to opt instead for a fuel-spill liability that falls under the overall liability limit.

Don’t gamble with your yacht insurance coverage. Contact the boat insurance professionals at Global Marine Insurance to review your yacht insurance policy, so you have the coverage you want and need.