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Yacht Insurance Basic

Updated on September 29, 2010

Boat Insurance

Boat is general term for watercraft. There are many types of boats, such as speedboats, cruiser, dinghy, day boat, and yacht. Boats are very expensive. To properly keep up care on your boat, having insurance on it is a must. Boat insurance often covers damage to your boat and a loss on your boat.

Boat insurance coverage varies from company to company and it varies also on how much you pay for it and what kind of specific coverage you receive. Many things can determine what kind of coverage you need for your boat. Things like how often you use your boat, where you use it at, and what you use it for. If you use your boat often it is probably a better decision to get an insurance that covers more. If your boat is not heavily used than a basic policy could probably be used.


Boat Insurance Rate

The boat insurance rates are depending on the boat size and price. Big and expensive yacht has different insurance rate with small motorboat. The size of your boat is foots can decide what kind of insurance you will need so make sure you know this information before going to get a policy.

Most of the time, it is guaranteed that wear and tear on your boat will not be covered. Dents or scratches on your vessel is probably left uncovered also. Ice and freezing conditions are hardly ever covered so you should be careful of bringing your boat or yacht into such conditions. For any particulars you want covered you should contact the insurance provider to make such a request.

Boat Insurance Coverage

The best coverage you can get for your boat or yacht is the "all risk" policy. Normally this kind of policy covers a broad span of losses. You should still get the particulars about what it does not cover. If you feel like you will run into issues of problems that it does not cover you should go for a larger insurance.

If you have questions on how much you should insure your boat for you should insure it for how much it would cost to buy it. However much your yacht is realistically worth is what the insurance value should be. This term is known as the "agreed value" of your boat or yacht.

Most of the time your boats insurance will agree to cover your boat no matter who is operating it. As long as you give them the permission to do so. Of course this to varies from policy to policy. Make sure you thoroughly understand all the details of your policy so if an issues comes up you won't be shocked by them.

Yacht Insurance

Yachts are luxury liners and are very prized. Yacht is a recreational boat. It is light and fast sailing boat. Privately owned yachts usually have 27-50ft length. Generally, yacht price is depend on the length and size of the yacht.

Having yacht insurance is a must for yacht owners. The insurance will protect the yacht, you and other people who sail with you. Common basic coverage includes protecting yacht from physical damage, protecting from any personal accidents and medical payments.

Based on yacht price and age, there are some types of yacht insurance. This plans vary from company to company; here some of those common plans:

  • Luxury Yacht Insurance. This type of insurance will cover yacht with value more than $500,000.
  • Old Yacht Insurance. This type of insurance will cover yacht with value less than $250,000 and the age less than 30 years old.

Based on the coverage, here are some common yacht insurance plans:

  • Hull Insurance. This insurance will cover such damages or loss caused by such events (such as fire, lighting, and collision) which is specified in the policy.
  • Third Party Liability Insurance. This insurance will cover any damage or loss cause by another person who use your yacht with your permission.
  • Personal Accident Insurance. This insurance will cover anyone who get accident around your boat.
  • Fuel Spill Pollution Insurance. This insurance will cover any damages or losses cause by fuel spill pollution.
  • Hurricane Insurance. This insurance will cover any expense of having the boat hauled in the event of a hurricane, tropical storm or tropical depression.

Most insurance companies will protect yacht for private use and pleasure use only. Commercial use such as renting the yacht, will not covered. If you are renting your yacht, you will need to call the insurance company whether they have charter yacht policy or not. Some companies will not covered any damage caused by racing or speeding.

All risk policy

Some companies offer all-risk coverage. Please note that all-risk coverage does not means it will cover every damage or loss happen. All-risk means it will cover anything except excluded in the policy. You should review what does it cover at what does not.

Depend on the company, excluded items are vary. Generally excluded items include loss caused by other person who use the boat without permission, damage caused by marine animals, damage caused by corrosion, etc.


Ever wonder what common yacht insurance claims? Here are some common yacht insurance claims:

  • Theft while moored, e.g: while anchored, and in storage
  • Damage while moored, e.g: hit by storm, sinking, flooding
  • Other accidental damage, such as collision with other boats, hitting coral while sailing, etc

Last Words

Before you take the insurance, it is better to consult with the experts. Experts will help you to review your financial and current yacht insurance. Based on the review, they will give you advise what type of insurance you should take.

Do I need boat insurance?


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