If you own a “big boat” for pleasure, it’s generally considered a yacht. It’s also expensive to own, maintain, and run. Yacht insurance rates are in general not cheap. Since it is of such high value, most of us want to insure our yacht in case of a total or partial loss on the water. In this brief article we will attempt to figure out the rates. In doing so we will explore some various types of coverage and companies to work with.
Most insurers define a yacht as a pleasure craft that is at least 27 feet long. You may have employees that work on your boat as well. You may also operate the vessel in international waters, or perhaps in the waters of various nations around the world. All of these factors require a certain type of insurance policy to meet your specific needs.
In order to determine what the rate for your yacht insurance will be, you have to define what types of coverage that you need. You also have to determine the amount of insurance that you need, which should be in line with the value of your vessel. Even though a yacht’s policy is actually similar to a jet ski’s policy, it will cost you a lot more to insure a yacht.
While policies do vary widely from one company to the next, here are some of the most common types of coverage that you may want to consider:
- Agreed Value Coverage: If you suffer a total loss, the yacht insurance company will pay you an amount that was previously agreed upon. For instance, if you believe that your vessel is worth $2,000,000 and you purchase a policy that has an agreed value of the same, you will receive that amount if there is a total loss on your boat.
- Liability: This type of coverage will protect you in many ways. If you are sued because of any proclaimed negligence, liability coverage will pay for your legal defense. If you have a crew that was working on the vessel, it will cover their Jones Act claims. If your boat is wrecked and the government requires you to remove it, this will cover that.
- Uninsured Boater: If you or your fellow occupants on the watercraft are injured due to the fault of another boater that is not insured, this will pay for any bodily damages.
- Damage To The Marine Environment: If you cause environmental damage to the water (perhaps from an oil or diesel spill), this type of coverage will cover any claims against you.
- Search And Rescue: If a government body (Coast Guard) charges you for a rescue during an emergency, this will pay those fees.
- Towing: Let’s say that your yacht breaks down in the high seas. If you need to be towed to a dock, this coverage will pay to have you towed.
- Repair Or Replacement: If your vessel is damaged, but is not a total loss, this will cover the costs to have any parts repaired or replaced.
Of course there are many other types of coverage that will impact your yacht insurance rates. The key is to work with an agent that is extremely knowledgeable about the industry. A good agent will help you to determine your needs, and to see where you can lower your yacht insurance rates where it makes good sense.
While there are many yacht insurance companies that you may want to talk to, a few of the most well known ones are the Ace Group, Travelers, Marsh, and Markel Marine. I highly recommend that you contact each of them.
In summary, to get the best rate on your yacht insurance, you need to know exactly what type of coverage you need. With that information, you should contact every respectable marine insurance company to find an agent that is knowledgeable and helpful in finding a policy that is right for you.