Congratulations on the purchase of that spectacular vessel! Now for the most important question: What insurance do you need for your new yacht? Read below as we discuss the types of coverage you may want to consider for your yacht. Should loss or damage occur, you want to have peace of mind – and hopefully be back on the water as soon as possible.
Here’s where to begin. Decide on coverage amounts. What deductible are you comfortable carrying? Are there are any specific types of coverage you believe are necessary for your particular vessel?
Let’s look at an example for clarification. Should another captain lose control of his boat and ram into yours, his coverage will pay for damages (up to his policy limits, of course). If he does not carry insurance or if your damages exceed your repair costs, uninsured/underinsured boater coverage can recoup your losses. Please note that you must elect this coverage for this scenario to work out in your favor.
Don’t base your yacht insurance decisions purely on cost. These will vary based on many factors, including the state you reside in, the age, size and type of your yacht and motor specifics. It also matters whether you plan to take your boat inland or out on the open sea. A general ballpark insurance number is difficult to give, as rates can range from $75-$500/year.
This is where it’s advantageous to call a marine insurance advisor. Only plan to use that yacht when you visit Florida in the wintertime? That may lead to a price break. Will the hull never touch salt water? The less-corrosive fresh water may give you the benefit of a discount. Boating safety course completion and evidence of good driving can also push down the cost.
Theft of personal possessions may or may not be covered. If you plan to leave expensive equipment and items of personal value onboard, you may want to ask specifically for coverage that includes theft. Passengers and the owner of the yacht are covered in case of an accident under a liability portion of the policy. If your yacht is going to serve as home base for plenty of water skiers, though, you may or not have coverage. When you speak with a marine insurance professional, be sure to mention if you will be pulling adventurous souls behind the vessel.
There are many reasons why boat insurance can be required. Some states demand that you carry liability coverage, and marinas often do not let you dock without it. It’s a sound investment in case you hit proverbial rough waters with your yacht. Enjoy the water and stay protected. A marine insurance professional can make sure of it.