Boats are big-ticket purchases that must be properly insured. Yachts are any boat over 26 feet used primarily for recreational purposes. Insurance essentials are similar for all boats but given the vessel size and travel exposure policies are usually more expansive for yachts. These are three important factors to know when looking for yacht insurance.
1. Basic Valuation
Boat insurance handles valuation two basic ways. Actual cash value is based on market rate and depreciation. Agreed value sets a price when the policy is written.
The former generally costs less up front, but the latter makes more sense for a newer yacht or one with many upgrades and special features.
2. More Options
Yacht insurance is typically more inclusive than a standard boat policy. These options routinely included in a yacht policy may cost extra with regular boat insurance:
- Fuel spill clean-up
- On-water towing
- Salvage and wreck removal
- Uninsured boater coverage
3. Specialized Coverage
There are also specialized coverage options to consider if they are not already part of your yacht insurance:
- Hurricane protection: Many policies cover protection or removal when docking or sailing in a region threatened by tropical storms or hurricanes.
- Special equipment: Yacht policies can include replacement for expensive water sports equipment or personal belongings often carried on these luxury crafts.
- Marine damage: Some yacht policies cover fines incurred for damages to coral reefs or other protected areas.
If you are a yacht owner, consider all these insurance options to ensure your vessel is properly covered before you take it out on the water.