Yacht Insurance

Protect Your Yacht Before Yelling “Bon Voyage!”

Whether you spend your time sailing up and down the coast on your luxury yacht or enjoy docking your private pleasure yacht at marinas around the world, our yacht insurance will protect your lifestyle year-round. We provide customized coverage and a variety of options for insuring your investment.

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Why You Should Rely on Yacht Insurance Specialists

Whether your requirements are relatively standard or extremely unique, W3 marine advisors will help you select the correct coverage. We understand the nuances of insurance and work with top-rated carriers to secure it.

You wouldn’t hire a captain without extensive yacht experience — your insurance advisor should likewise possess superior knowledge. Consider W3 yacht insurance advisors your ‘captains of insurance.’ Let’s work together to ensure your vessel is protected.

What Does a Yacht Policy Cover?

Yacht insurance typically covers you, your yacht and your passengers — depending on the policy and coverage selected.

Hull Coverage

Hull coverage is a main component of watercraft insurance that covers the owner against covered losses resulting from damage to the watercraft. There are two options for hull coverage — agreed value (AV) and actual cash value (ACV). The difference between these is potentially huge. Additionally, always read your policy contract to be familiar with terms, conditions, and exclusions.Let’s say you suffer a total loss. Agreed value (AV) means that value is not beholden to depreciation when loss occurs. You’ll have hull coverage for the amount shown in your policy.

Actual cash value (ACV) is different. At the moment the total loss occurs, the settlement of the claim is subject to depreciation. Yes, you can purchase ACV coverage in exchange for premium savings, but keep in mind that your loss settlement may also be less than the amount shown in the policy. 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 coverage is ultimately better? An ACV policy means a lower premium – but beware of the depreciation that comes into play at settlement less any applicable deductible. With agreed value, the policy pays the entire amount of the hull limit minus any applicable deductible for total loss. We recommend choosing an AV policy.

Core Coverage

In addition to hull coverage, there are other coverages you may want to consider:

Boating Equipment
It’s important to know how your policy separates equipment used for yacht operations. It may be included in the hull limit or it may be a percentage of the hull value. This will depend on the insurance company providing the coverage.

Watercraft Liability (sometimes listed as Protection & Indemnity) is 3rd party Bodily Injury (BI) and Property Damage (PD) liability coverage that comes into play when the insured vessel is involved in a boating accident during which a covered operator is at fault.

BI coverage pays for medical costs incurred from bodily injury, lost wages, sickness, or death related to the accident. This coverage also pays for legal fees and recompense for pain and suffering that may result from the accident. BI responds if you’re found negligent for bodily injury to others.

PD coverage pays for damage to other boats, property and structures. PD responds if you’re found negligent for damage to property of others.

Crew Coverage
The Jones Act is a federal statute that provides a means for crew members injured as a result of negligence to recover for damages. Take care of those who work for you as captain or crew. Should injury occur during their duties, are they covered? Adding crew coverage also protects you as the vessel owner if they bring forward a lawsuit for a crew claim. This coverage is usually a separate endorsement to your yacht policy and an additional premium is generally charged based on the total number of crew members. Always refrain from hiring crew unless this important coverage is purchased.

Here, policy limit is the main focus. Some policies will have an occurrence limit subject to an annual aggregate limit. Is there a maximum limit if you are more than ‘x’ miles offshore? Is towing handled like a claim where you’re reimbursed, or is the insurance company billed on the backend of the transaction?

Uninsured Boaters
Uninsured boater coverage is bodily injury coverage for a covered person if your covered vessel is struck by an uninsured boater.

Discover if you have the right quantity and quality of yacht insurance.

What Type of Insurance Do I Need For My Yacht?

Deciding on coverage amounts can be difficult. What deductible are you comfortable carrying? Are there any specific types of coverage you believe are necessary for your particular vessel?

Some states may 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. However, Florida does not require boaters to carry insurance. This means that potentially thousands of uninsured boats fill the waterways.

How Much Does Yacht Insurance Cost?

Yacht insurance cost will vary based on many factors, including:

  • The state in which the boat is moored/stored

  • The age, size and type of your yacht

  • The motor specifics of your yacht

  • Vessel purchase price

  • Duration of use (seasonal vs. year-round)

  • Corrosion probability (fresh vs. salt water)

  • Boating safety course completion

  • Driving history

  • Claim history

  • Navigational area

  • Experience owning comparable size vessels

  • Pleasure use vs. commercial/charter

  • Crew exposure

  • Insurance scoring

  • Coverage limits and deductible

A long list of factors determine the premium for boat insurance. Let us explore the quoting options for you.

Luxury Yacht Special Requirements

There’s so much more to a luxury yacht than glamour and ease. As an owner, there are additional coverage options you may want to consider, including (but not limited to):

  • Coverage that extends further — Navigational limits

    By this we mean ‘more than the norm.’ The navigational limits on a luxury yacht policy are typically much broader than that of a boat or yacht policy.

  • Extensive personal property

    Think about all the personal items you plan to keep on your yacht. Some luxury yacht policies include a separate limit for fine arts and passport replacement expenses.

  • Personal Watercraft/Dinghy

    Commonly there’s automatic coverage provided (physical damage and watercraft liability) if underwriting specifications are met.

  • Moped/Motor Scooter

    Many luxury yacht policies will include physical damage coverage while these ‘toys’ are carried onboard the yacht.

  • Marine environmental damage

    Cut a gash through a coral reef? This could be covered under such coverage — and so could the fines/penalties levied.

  • Search & rescue and substitute yacht

    Let’s hope you don’t ever need this coverage. See if your policy includes these additional coverages.

These examples are just a few coverage considerations which may be available.

Find the best coverage for your yacht with a quote from W3. Get started today.

General Florida Yacht Insurance FAQs

Boat insurance rates in Florida depend on a variety of factors, ranging from the type of watercraft you are insuring to the amount of insurance requested. Other factors that may influence your Florida boat insurance cost include:

Does my policy cover everything?

This statement says it all: if you’re looking for a standard, one-size-fits-all yacht insurance policy, you won’t find it. Differences in coverage abound. Your best plan of action is to partner with a marine insurance agent who can listen to your unique needs and present quote options for your consideration.

Why is my insurance company asking for a letter of compliance?

If you’ve had a condition and valuation survey report completed for your yacht, the insurance company is going to want proof of your compliance with the recommendations listed in the survey. It’s an underwriting requirement to comply with survey recommendations. Usually a written statement from you will suffice. If certain items are cosmetic, identify what you don’t want to repair and share this information on the signed letter of compliance.

How Can I Save on Yacht Insurance?

  1. Contact a marine insurance advisor to ensure you do not carry redundant coverage. Insure what you need; nothing more, nothing less.
  2. Take care of your investment.
    • Keep up with yacht care and maintenance.

      Keeping a yacht in ship-shape condition takes plenty of time and energy, but the reward for doing so can be generous (and thankfully, yacht management companies exist to take the burden off your hands). A yacht in good condition will fetch a higher resale value than one that has been neglected. Also, keep in mind that a yacht has to be maintained in a seaworthy condition in order to be insured. The yacht insurance premium will vary based on many rating factors, including the limit of coverage.
    • Properly store your yacht.

      Keeping that yacht as pristine as possible is the goal, so how does one find yacht storage that fully protects your vessel from the elements? Whether you’re planning to secure your yacht from a potential storm or simply need a dry dock option when the vessel isn’t in use, there’s a location to match your criteria.
    • Put safety first.

      That wireless auto tether that turns off the outboard engine may set you back initially, but preserving a life is worth the cost. Additionally, consider purchasing an Emergency Position Indicating Radio Beacon (EPIRB) — a device that transmits your yacht’s details and precise location — to aid search and rescue authorities in emergency situations. Protect yourself and your assets; you can’t predict an emergency, but you can prepare for one.
    • Become a student of the water.

      It’s time to pack that backpack and head to class. Boating safety courses can qualify you for a policy price break. Ask your agent which ones offer the biggest return both educationally and fiscally. A little extra knowledge is always a great asset, payout or no.

Request Your Customized Yacht Insurance Quote

As a major yacht insurance provider on the West Coast of Florida, W3 Insurance understands yacht insurance and the unique needs of yacht owners. Our underwriters provide a high level of protection for vessels so that you may take comfort in knowing your investment is protected. Our experienced advisors assist owners of boats, yachts, and luxury yachts in determining necessary coverage. We account for differing navigational territories, as well as other unique consumer marine insurance needs, to craft a quote that offers customized protection.

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