Yachts can be sailing vessels or have motors, and can have a number of hull types. What makes a boat a yacht is its length – typically 33 feet or longer – and the fact that it is almost always a luxury pleasure boat.
Insuring a yacht is critical if it is damaged or destroyed, as the cost of repair or replacement is likely to be very expensive.
To get the right yacht insurance for your specific needs, contact a local, independent agent in our network. One of these agents, right in your area, can customize a yacht insurance policy to your specific watercraft, its value, and how you use it.
With a local independent agent, you can gain peace of mind that your yacht insurance questions will be answered.
When you’re enjoying a day out on the water, the last thing on your mind is danger. Accidents do happen, and you should be prepared in case you face unexpected hardship. Here are some statistics about boating accidents:
- Cabin motorboats, which include yachts, accounted for 14% of all boating accidents
- Only about 20% of all boaters who drowned were on vessels larger than 21 feet
- Operator inattention was cited as the leading cause of accidents involving cabin motorboats
What Is Yacht Insurance and What Does It Cover?
Yacht insurance is a specialized type of boat insurance for higher-end boats. Yachts can be used for personal as well as commercial use, so insurance policies must be created to accommodate each of those needs.
While yachts, like most boats, depreciate over time, they still generally have a much higher than average value. Because of their high values, a standard boat insurance policy may not provide enough coverage for your vessel.
The components of yacht insurance are similar to standard boat insurance coverage:
- Bodily injury and property damage liability: Covers the costs associated with injuries or property damage you cause to another person, as well as legal fees. Note that if you have significant assets to protect, you want to be sure that your liability limits align with your financial profile. If the liability limits in your yacht insurance policy are not adequate to protect your assets from a lawsuit, you may want to consider buying an umbrella liability policy, which provides a much higher liability limit.
- Collision coverage: Pays for damage to your boat after a collision.
- Comprehensive coverage: Covers non-collision damage or loss, including theft, fire, vandalism, or damage caused by an object other than another boat.
- Additional options:
- Uninsured/underinsured boaters insurance is an important option to consider for anyone with a significant amount invested in a vessel, especially because boat insurance is rarely required by law. This means there are a lot of boaters out there who will not have sufficient coverage in place to pay for your injuries or damages if they are at fault for an accident.
- Medical payments coverage will pay for medical expenses and funeral expenses for anyone on your boat.
- Equipment and personal effects coverage can help to repair or replace damaged or lost items such as gear, fishing equipment, cameras and other personal belongings.
An independent agent in our network can work with you to determine the appropriate coverage for your needs. Because these agents work with multiple insurance companies, they can help protect all of your interests with a broad range of insurance coverage, all from one agency office.
Is Yacht Insurance Different from Standard Boat Insurance?
Yacht insurance provides similar types of coverage as standard boat insurance. However, yachts have some specific differences from standard boats, and yacht owners generally need certain protection that regular boat insurance does not provide.
For example, a yacht policy tends to restrict hauling on a trailer to only a few hundred miles, while boat insurance tends to provide coverage for trailering over longer distances.
Also, deductibles for yacht polices are very flexible, instead of having set amounts like $250, $500 or $1,000. Also many yacht policies can include coverage for raising and removing a sunken yacht, while boat policies generally do not include this coverage.
Is Yacht Insurance Required?
Yacht insurance is not typically required by state law; however, sailboats often do have insurance requirements. So, if you have a sailing yacht, insurance may be required by law.
You will also need to buy insurance to protect your investment in your vessel if you finance the purchase of your yacht through a lender.
Many marinas require that you have insurance in order to slip your boat at the marina. Check your local marina's guidelines, and be sure to learn about your state’s laws and regulations.
A local independent agent in our network is a great resource; one of these agents can help you learn what you need to know about coverage in your area.
Do I Need Yacht Insurance?
Insurance coverage is a very individual matter. At the end of the day, you want to make sure you're insuring your boat properly for the activity you do with it, from pleasure boating to sailboat racing to commercial chartering.
Be sure you consider the other assets you want to protect, not just your boat. In the event that an injured party files a liability claim against you, you will want to have enough coverage in place to protect your boat, home, savings, investments and future income.
Also, it is important to evaluate the cost of repairing or replacing your yacht in the event of an accident, and whether you will have those resources set aside.
One of the worst case scenarios to consider is the possibility of owing money on a vessel that has been destroyed in an accident without having enough insurance coverage to replace it. Assessing your financial situation will help you to determine how much yacht insurance you need.
A local independent agent can help.
How to Compare Quotes on Yacht Insurance
A local independent agent in our network can gather multiple quotes for you from several different yacht insurance companies and help you compare options and rates. Your agent can assist you with every aspect of your insurance, and will be your point of contact if you need to file a claim.
You will get a fully customized policy that fits your needs when you work with an agent. You will know you are getting the right coverage for your needs, and that you are not paying for any unnecessary coverage.
An independent agent can help to prevent gaps in coverage that leave you exposed to risk. Find a member agent in our network today to get back on the water with confidence.