Yacht Insurance - Seven Key Points to Getting The Right Policy

If you have a marine yacht longer than 26 feet in length, then you are required by law to carry yacht insurance . The proper definition of insurance for yachts under 26 feet is 'boat insurance'. This is to differentiate the insurance for larger yachts which need individually negotiated policies as there are significantly larger values and ranges of requirements involved. However, the general principles of both yacht insurance and boat insurance types are similar.

So what are the principal reasons for taking out yacht insurance? . The first reason is to ensure that your financial investment in your valuable yacht is protected in the unfortunate event of the occurrence of damage, fire, theft or any other incident where your yacht is subject to a full or partial loss. The second reason is that yacht insurance provides a financial remedy in case anyone is injured or falls ill while on your yacht or as a result of an accident caused by it.

Which are the key elements you need to examine when insuring your yacht?

Comprehensive Coverage - There are three main areas of insurance for your yacht; physical damage, e.g. collision, fire and vandalism or theft. Some policies allow you to make a selection amongst these. Selecting a smaller protection range will obviously cost you less, but then you personally assume the risk for any other eventualities. In the end, most people find it is best to purchase a yacht insurance policy which protects you against all three risks.

Home Mooring - It is important to be open and truthful when obtaining a marine boat insurance quote for your yacht. You may keep your yacht moored in a dock or marina, or it may spend its time in a tidal mooring, but either way you must be honest so you will be properly covered by your boat insurance in the event of an accident.

Third-Party Liability - In the unfortunate event that your yacht gets damaged, stolen, or totally burned out, you always have the choice of doing nothing and simply accepting your loss. Unfortunately you will not be able to ignore it if another person is injured or their yacht damaged by you or your yacht. You will have to pay up yourself to make restitution. This is where the third party part of your yacht's insurance policy will come into effect so you do not have to pay out personally. In certain cases, such as mooring at many docks, it is required that you have boat insurance third-party liability of no less than $ 2 million prior to sailing there.

Location of Coverage - You must be sure to understand where the insurance you have purchased is in effect. The sailing area defined by the majority of yacht insurance companies is pretty generous; however please read the definition carefully and understand what the limits are. If you wish to increase your sailing range then additional premiums may be levied. Location also comes into effect with non-sailing insurance. One example is when the yacht is stored dockside, either over winter or for repairs and maintenance. Another example is if your yacht is to be transported by road.

Insurance Value - When determining your yacht's value for marine insurance purposes there are two principal options. The first is by an agreed-on figure written into the policy document. The second is by valuation. In the latter case, the value is determined by a marine surveyor after a yacht's loss. The advantage of the former method is that the value is known and agreed upon prior to any incident. This will allow a much more rapid resolution if and when a claim must be made.

Laid-Up Period - It is a 'feature' of some yacht insurances that you do not sail at certain times of year in some locations to avoid extreme weather and in others to avoid the deep winter months. Examine your policy closely to verify any laid-up period requirements.

Ease of Claim - A yacht insurance policy is only as good as your ability to make claims from it in the event of an incident . Talk to fellow yachtsmen and yachtswomen at your dock, marina or sailing club. Use their experiences to check out the insurance companies and brokers that are best to use, or avoid, so that you will find submitting a claim is easy if it is ever required.

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