Author Box
Articles Categories
All Categories
Articles Resources

Yacht Insurance - Seven Key Points to Getting The Right Policy

June 02, 2012 | Comments: 0 | Views: 149

If your yacht is over 26 feet long then it is a requirement for you to have a yacht insurance policy in force. Insurance for yachts that are less than 26 feet long is technically referred to as boat insurance, but for larger yachts, individual insurance policies are needed because of the increased values and the range of requirements. However, the general principles of both yacht insurance and boat insurance types are similar.

There are two key reasons for having yacht insurance. First is to protect your financial investment against damage, theft, fire, or any other event which could cause complete or partial loss of your treasured vessel. Secondly, if another person or yacht is injured or damaged by your yacht then a financial remedy will be paid out by your yacht's insurer.

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. If you chose not to take one or more of these insurance types then you are assuming all the risk in the unfortunate case that such an event occurs. Also that can lead to problems if you have insured for damage, but the actual damage is a combination of collision and fire. So, on reflection, the vast majority of yacht owners sensibly insure against all risks through a comprehensive yacht insurance policy.

Home Mooring Location - Many policies ask where your boat is normally moored. It is vital to be truthful and accurate about this when you are applying for marine boat insurance 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. However, if you or your yacht injure another person or cause damage to their property, you won't have that option. You must reach into your own pocket 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. Even though there is not an overarching requirement for insurance cover there are plenty of localities where it is necessary - an example is in most docks, marinas and harbors where a minimum insurance is required, perhaps $ 2 million.

Coverage by Location - Take care to understand where your insurance policy provides cover for your yacht. Most yacht insurance companies are fairly generous with their definition of sailing area, but make sure you read and clearly understand any limitations. The range can always be increased if necessary, but some additional premiums may be required. The location is an important consideration with the non-sailing portion of your insurance as well. 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. Having a pre-agreed figure in your policy brings greater certainty in the event of a claim; a second advantage is that, as the figure is agreed in advance, a settlement can be more speedily executed.

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.

How easy is it to make a 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.

Hurry; for a Free Report about the Top Ten aspects to consider when insuring your boat Pick up these important tips, pointers and guides - visit

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Yacht Insurance


Boat Insurance


Marine Insurance

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

If you own a boat, whether it's a sailboat, power boat or yacht you will want to have the right marine insurance to protect your watercraft and the people on it. Boats provide great fun and

By: Kevin McLaughlinl Insurance > Watercraftl June 07, 2012 lViews: 134

Sailing off into the distant blue, has the favorable effect of blowing away your life's strains and cares with the blowing wind. Yet, before you voyage off in your attractive boat, take five and

By: Tony Lordl Insurance > Watercraftl May 20, 2012 lViews: 161

If new to owning a boat, you might be hoping that an existing homeowner's insurance plan will feature an extension for boat coverage. Sadly, this is not the case in most instances.

By: Arran Jamesl Insurance > Watercraftl April 20, 2012 lViews: 172

It is exactly 100 years since the pride of the White Star Line, the RMS Titanic, hit an iceberg in the Atlantic Ocean and sank with the loss of over 1500 lives. The centenary has prompted many

By: Dave Healeyl Insurance > Watercraftl April 20, 2012 lViews: 285

To save you the hassle, this article will take a look at some of the most common reasons that people are denied boat insurance. Make sure that your boat does not fall into these categories and you

By: Amanda Rodriguezl Insurance > Watercraftl April 05, 2012 lViews: 153

It is essential to compare boat insurance like other types of insurance you get. That little work of comparisons will help you decide which policies best fit your boating lifestyle. Comparing boat

By: Gal Kalkl Insurance > Watercraftl February 04, 2012 lViews: 154

Sailing off into the distant blue, has the favorable effect of blowing away your life's strains and cares with the blowing wind. Yet, before you voyage off in your attractive boat, take five and

By: Tony Lordl Insurance > Watercraftl May 20, 2012 lViews: 161

For many writers the dream is to be able to get their message across to their readers without the bother or cost of editors and publishers. Being able to write without restrictions is a great concept

By: Tony Lordl Writing & Speaking > Publishingl February 24, 2012 lViews: 172

Here are five key points to guide you when you are seeking information about how to self publish a book. Each one of these is an important step on your road to success.

By: Tony Lordl Writing & Speaking > Publishingl February 18, 2012 lViews: 141

Discuss this Article

comments powered by Disqus