Yacht insurance is a comprehensive amalgam of coverages that can be tailored to fit very individual needs. There are multiple factors that will influence the type of insurance and coverage that will best suit your needs. If you’re looking for insurance for your yacht, here is a primer that will help you understand the basics for your coverage.

Yacht or Boat?

For insurance purposes, a yacht is typically defined as a watercraft that is approximately twenty seven feet or larger. Policies can vary so a distinction is often made to customize coverages. Yachts are typically used for private pleasure, however there are policies available that do cover commercial charters.

Two Sections of Coverage

There are two main sections with a variety of sub-sections when it comes to yacht insurance. The first section covers the hull and equipment and the second covers protection and indemnity liability.

Hull and Equipment Insurance

Hull and equipment insurance provides coverage for the physical repair of your boat if it is damaged or destroyed. It will cover the hull itself and also includes motors and machinery, accessories, equipment, and personal property in the cases of collision, fire, windstorm, lightning, theft, or vandalism. There are always exclusions depending on the insurance company, so it is very important to read and understand these.

The hull and equipment section will include coverage based on two different criteria. The Actual Cash Value policy will pay for replacement less the depreciation at the time of the loss. The Agreed Amount Value policy will pay for an amount that is predetermined by the owner and insurance company. Yacht insurance typically uses the AAV or Agreed Amount Value to determine coverage.

Always read the warranties section of your policy. These are things you are agreeing to, as an owner. Your insurance can be denied if you have not kept up your part of the warranty agreement.

Property and Indemnity Insurance

Property and Indemnity (P & I) Liability coverage deals with bodily injury and property damages and will protect you if you are sued after a collision or someone is hurt on board your boat due to negligence. It is important to have specific P & I insurance as maritime laws are very unique and this insurance takes those particulars into consideration. The amount of your liability coverage will be dependent on your specific needs.

Sub-Sections of Coverage

There are sub-sections of yacht insurance policies that deal with medical coverage, uninsured boaters, and towing. The medical portion of the policy will pay for reasonable medical costs for an injury sustained on the boat. Uninsured boaters coverage will pay for any damages to your boat due to damages caused by boaters who are not insured themselves. Commercial Towing and Assistance coverage will reimburse you for costs due to a breakdown that require a commercial tow.

When you are shopping for yacht insurance, it is important to seek a professional agent that specializes in marine insurance. Your agent can assess your needs and direct you to the right insurance policy for you. At InsureAnyBoat.com, we are your yacht insurance experts.

Call 1-800-585-1665 today to request a quote from InsureAnyBoat.com