If you are in the market for yacht insurance, you are probably wondering exactly what potential damages you need to obtain coverage for. Boats are similar to cars in that lots of things can go wrong, but there is far less known about boating insurance than auto insurance.
Accurately Classify Your Vessel
When you buy yacht insurance, it is first important to determine that you do, in fact, need yacht insurance rather than boat insurance. In general, according to DiscoverBoating.com, a vessel must be insured as a yacht if it is 27 feet or longer. Anything less can be insured as a boat.
Consider Boat Storage
Do you store your boat in a storage center when it’s not in use, or is it docked in a marina? Do you keep it in coastal waters or a lake dock? And how protected is your storage location?
Some marinas, for example, offer 24-hour security and other safety measures that reduce the chances for vandalism and theft. If you live in a waterfront gated community and your vessel is docked just a few yards from your home, you don’t need as much about yacht insurance as someone who docks his or her boat hundreds of miles away at the coast.
Evaluate Boating Patterns
Where do you take your boat? And for what purpose? For example, driving your boat to a specific location and stopping for several hours to fish is much less dangerous than racing your boat across open water for the purpose of water sports or simple speed. The more you and your boat move in the water, the more yacht insurance you should buy.
Find Out How Populated the Water Is
You will need to purchase more yacht insurance if you boat in a highly-populated area, where dozens or hundreds of boats are operated simultaneously. This is because the chances for a crash are much higher, whether you are careless or are hit by someone else. Additionally, theft is more common in populous areas.
Decide What to Keep on the Boat
It is important to ensure your yacht insurance covers not only the vessel, but also any expensive equipment you carry on it. Many modern yachts are equipped with high-end electronics, for example, that would cost you a fortune to replace. Or maybe you store sporting equipment, such as fishing gear or water skis, that is not inexpensive to replace.
Figure Out Who Will Accompany You
What’s the fun in buying a yacht if you don’t take your friends or family members out on the water with you? The problem with this is that your yacht insurance will not necessarily cover limitless passengers. If someone is injured on your vessel, you’ll want to ensure they are covered.
Purchase Agreed Value Yacht Insurance
Many yacht insurance policies cover only market value, or actual cash value, in the event your boat is totaled. This means that you will only be entitled to the value of the vessel at the time it was destroyed, based on the insurance adjuster’s evaluation.
If you purchase agreed value yacht insurance, however, you will receive the amount you and the insurance company agreed it was worth at the time the policy was enacted. This is much more likely to get you the full value of the yacht if it is totaled in an accident or otherwise rendered inoperable.