Whether your requirements are relatively standard or extremely unique, W3 marine advisors will counsel you to secure 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 secured from threats.
Before you head out on the water, make sure you’ve opted for top-notch insurance that covers both your vessel and the people enjoying it. Finding the best coverage for your particular needs isn’t difficult with W3 on your side.
Here’s what to expect as you embark upon the yacht insurance process:
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.
How does the policy separate equipment used for the operation of the yacht – and is this considered AV or ACV?
Look here for exclusions to the policy. Does it appear that an exposure is missing? If so, ask why.
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?
Here, occurrence number is the main focus. Are you covered for only a certain number of tows?
What exclusions exist here?
By this we mean ‘more than the norm.’ This coverage pads the basics. What should happen if your yacht is involved in an accident and that vessel is uninsured? What about fuel spills? Dinghy considerations?
Think about the personal items you plan to keep on your yacht. Now imagine they’ve vanished. What are they worth in terms of sentimental and monetary value?
Does your yacht require extra assistance should a system breakdown or collision occur? It may be wise to opt for extra protection if so.
Your yacht is more than just a ‘pretty face,’ but if that façade is highly compromised, it would be wonderful for your insurance to cover a facelift that restores the vessel to its original glory.
Cut a gash through a coral reef? This could be covered under such coverage – and so could the fines/penalties levied.
These features may be found in your policy’s terms and conditions if you have a covered hull claim. Check to see if this is the case.
Deciding on coverage amounts can be difficult. 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 vessel 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 in which you reside, the age, size and type of your yacht and motor specifics. It also matters whether you plan to take your yacht 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 under a liability portion of the policy in case of an accident. 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.
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.
There are as nearly as many ‘flavors’ of boating vessels as there are ice cream. If you own a luxury yacht, don’t insure it as a dinghy. However, there may be elements of a more expensive policy that you simply do not need. An expert insurance advisor can make sure such a mistake does not happen.
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.
Keeping that yacht as pristine as possible is the goal, so how does one find yacht storage that fully protects a luxury 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.
That wireless auto tether that kills the engine if a passenger goes overboard may set you back initially, but an insurance underwriter can choose to give you a discount because of it. Have safety features? Make sure your insurance company knows.
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.
Not planning to use the yacht for a while? Insurers may cut your premium. Look at your calendar and be honest with yourself. You may receive a price break off your policy’s hull portion. (If you do have a lay-up period, make sure you know when it is. Damages incurred during that time will not be covered).
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 direct you to an A-rated or surplus lines carrier. This agent should also be able to advise you regarding specific add-on coverage options.
An ACV policy means a lower premium – but beware the dreaded depreciation. In the case of a total loss, an ACV payout is determined from your vessel’s current state. With agreed value, the policy pays the entire amount of the hull value, minus any deductions that apply. Want to have a solid number in mind should disaster occur? –Choose an AV policy.
If you’ve had a survey done for your yacht, the insurance company is going to want proof of your compliance with the recommendations of that survey. If you do not supply this to them, they have no record that you’ve complied with the suggested repair – and may choose not to pay out if you suffer a loss.
Pack sunscreen. From an insurance standpoint, you’ll likely be asked for a recent survey that includes rigging inspection. Coverage that includes ocean crossing should be bound as well.