If you own a yacht, having the right insurance is essential. Without it, you could face significant out-of-pocket expenses. Or worse, you could be responsible for serious liability costs.
In this article, we review what makes yacht insurance unique. We also explore the various types of coverage available, depending on your yacht usage and risks.
Who is this article for?
- New yacht owners learning about vessel coverage
- Seasoned yachting enthusiasts desiring better protection
- Yacht owners new to the Pacific Northwest seeking yacht insurance
How Yacht Insurance Differs from Other Types of Watercraft Coverage
While smaller vessels use regular boat insurance, yacht insurance is designed for craft over 26 feet long. It’s also meant to cover more expensive vessels, often with luxury finishes and expensive property on board.
There are other differences between boat and yacht insurance:
- Yacht insurance typically covers shorter distances for overland trailering, which is minimal because of yacht size.
- Liability coverage for yachts tends to be much higher, given their size and larger navigational area.
- You can add coverage for crew or employees, which isn’t necessary with smaller vessels.
- Salvage coverage in case of a wreck is structured differently, with higher limits and broad coverage.
- Instead of a flat deductible, yacht policies use a percentage (usually up to 3%) of the hull value.
- Most policies are written for a predetermined agreed value, which doesn’t depreciate or change with the market, unlike actual cash value.
How to Make Sure Your Yacht Is Fully Protected
Every yacht is special, and each one is used differently. You may travel from Vancouver, Washington to Cabo for the winter, while another yacht owner might lay up in the off-season. Therefore, your policy needs to protect your vessel for the way it is outfitted and sailed.
Here are some questions you should ask when purchasing a yacht policy:
- What is the agreed value of the yacht? Can replacement coverage exceed 100%?
- How is the deductible calculated? Is it waived in cases of total loss?
- What is included with your liability protection? Does it cover medical payments, uninsured boater coverage, or protection for captain and crew, if needed? Does it include legal defense costs?
- What coverage is provided for salvage, wreckage, oil pollution, and marine environmental damage?
- Do you need full insurance during lay-up periods if you don’t use your yacht all year?
Those are the basics. Most yacht owners add further protection for things like:
- Emergency towing and assistance
- Search and rescue
- Trailering
- Temporary substitute watercraft
- Marina as additional insured
- Personal property and fishing gear
- Dinghy and personal watercraft (jet skis)
Some yachts might need special policies for being extra large, for towing other vessels, or for navigating on foreign waters. If your yacht carries valuables, such as fine art, that may require additional coverage.
The Importance of Partnering with Experienced Marine Insurance Agents
An experienced insurance agent will inquire about all of the above and more in order to give you the best yacht protection possible. At Davidson & Associates Insurance, we have a Marine Division dedicated to clients just like you. You get personalized service because we’re an independent agency, plus a huge menu of marine insurance products.
Call us at 360-514-9550 to tell us about your yacht so you can give it the protection it deserves. Or reach out online and let us know how we can get your policy started.
