When it comes to yacht insurance, quantity, and quality both matter. Read below as we discuss the different types of policies. Learn how opting for more coverage that stays true to the test of depreciation can be a huge benefit – and contact a W3 marine insurance advisor for additional assistance.
First, let’s talk hull coverage. Is yours considered agreed value (AV) or actual cash value (ACV)? The difference is potentially huge. Let’s say you suffer a loss. Though some common items will still depreciate, agreed or stated value means that, unless excluded, value is not beholden to depreciation when loss occurs. Simply put, you’ll get back what you paid.
Actual cash value is quite different. At the moment the loss occurs, the items covered therein are open to depreciation. Yes, you can purchase ACV coverage along with an endorsement that covers partial losses – but keep in mind that this won’t encompass everything. If complete coverage is important to you, it’s time to speak with that insurance advisor. He or she will take you through potential scenarios and deduce which type of policy is ideal.
Which is the more expensive policy to carry? –Definitely, one that is agreed value. However, doing so eliminates the surprise that can come when filing a claim and realizing that, due to depreciation, you have lost much more than expected.
Next, let’s examine core coverage. Take a look at your quote, insurance binder or declarations page of your policy for this information. Here you’ll find:
Equipment & Hull/Machinery – How does the policy separate equipment used for the operation of the yacht – and is this considered AV or ACV?
Protection & Indemnity – Look here for exclusions to the policy. Does this look as if an exposure is missing? If so, ask why.
Crew Liability – Take care of those who work on your vessel. Inquire if they are covered should injury or illness occur – and if not, what must be done to add this coverage?
Towing/Labor – Here, occurrence number is the main focus. Are you covered for only a certain number of tows?
Uninsured Boaters Liability – What exclusions exist here?
By thoroughly assessing the risk of your unique vessel, you and an insurance advisor will be able to properly protect it. Contact a W3 marine insurance advisor today to ensure you have the quantity and quality of insurance necessary.