Yacht Insurance Coverage
Most yacht insurance companies will insure vessel 26’ and up on a yacht policy form, however; in some cases companies will write a boat as large as 40’ on a small boat policy.
Although a yacht policy, which will always provide agreed value, “all risk” coverage, is certainly the preferable form of coverage, close attention must be paid as these policies vary a great deal from company to company.
Anchor Marine represents most of the of the major companies that are writing yacht insurance, so we are well suited to help you identify the differences between each policy and help you decide which is best suited for you needs.
Below are the important parts of the policy to look at when comparing yacht policies:
All true yacht policies are agreed contracts, meaning that if your vessel is declared a total loss you will always receive the amount shown on the policy, less your deductible.
The important thing to look at is how the policy will cover partial losses or repairs.
All yacht policies will pay for repairs without any deduction for depreciation, except on certain items listed in the policy.
Most yacht policies will depreciate items such as canvas, upholstery, coverings and engines and machinery over a certain age.
When comparing policies it’s important to look at this clause, as it can have a significant impact on the portion of your claim that is paid.
Yacht policies are known as “all risk” policy’s. Although this is the broadest form of insurance, it does not mean everything that goes wrong is covered.
It means that all losses are covered, except for those that are excluded.
Some typical exclusions are: * wear & tear * gradual deterioration * insect damage * marine life damage * animal damage * mold * marring & denting * osmosis * blistering * electrolysis * manufactures defects * design defects
Most policies contain many of these exclusions, but some do not, meaning they offer broader coverage.
The bottom line, when comparing policies one should always look at what is and is not excluded.
All yacht policies have what is known as a navigation warranty, which describe the area that the vessel can be operated in.
It is very important to pay attention to this because if the vessel is operated outside of the navigational limits, the company may void the policy.
Because the warranty’s will vary from company to company, it’s important to make sure that the policy your being quoted will be broad enough to allow for your cruising plans.
The liability coverage on a yacht policy is known as Protection & Indemnity and provides broad coverage that protects you from third party liability and various maritime laws.
The coverage is much broader than with a typical small boat policy.
On most yacht insurance company policies Protection and Indemnity covers permissive users, your captain and crew.
It also covers Longshoreman & Harbor Workers Act and the Jones Act which are federal laws allowing crew and those working on your boat to bring suit for damages again the vessel owner.
In addition the coverage usually provides coverage for wreck removal and pollution liability.
Finally when comparing policies it’s important to look at the defense coverage.
Most yacht insurance policies will pay the cost to defend you above and beyond your liability limit, however; some do not which means that they could use up your limit defending you and not leave any money to pay for damages.
Yachts we typically insure: * Classic Vessels * Cruisers * Custom Vessels * Live-aboard * Motor Yachts * Offshore Fishing Boats * Sail * Trawlers * Tugs * Wooden Boats