Yacht insurance is a great option for any yacht owner.. This insurance helps your yacht to run smoothly over water without any need to worry about the financial constraints. Yacht insurance covers the structural damages caused to yacht in or out of the water, it also required for providing coverage against the damage done by yacht to the other property. There are two basic options for reimbursement where either yacht owner gets full coverage against the totaled yacht or comparatively cheaper definite cash value. This definite cash value is dependent upon the deflated value of the yacht and the running market value for the damaged yacht. If there are other items of coverage over yacht, then yacht owners can provide additional coverage by raising the premium amount. Before committing to a yacht insurance company, yacht owners should clarify the aspects related to the replacement value after totaling of the yacht.
Yacht Insurance Benefits
Recent surveys from U.S. Coast Guard stated that there is a continuous increase in the damages to boats and yachts. Therefore, most of the states have made it obligatory for yacht owners to get their yachts insured before any actual damages occur. If yacht owner has purchased one’s yacht on loan, then one may need to get it insured too. There are similar coverage aspects for yacht insurance to auto insurance but there are certain changes. Yacht insurance benefits are as follows:
- Motor coverage
- Financial liability for legally enforceable obligation
- Docking fenders
- Yacht covers
- Communication devices
- Physical damage
- Other property damage
- Trailer coverage
- Medical payments for the injured persons
In addition to these covers, yacht owners can also have certain discount offers like:-
- Burglar alarm
- New yacht
- Standard yachting education lessons
- Ship-to-shore radio communication
- Automatic fire extinguisher
Yacht insurance policies cover all the risks associated with the yacht for providing the best possible protection to the insurance holder. There are exclusions in the insurance policy such as:
- Wear and tear
- Manufacturer’s defects
- Animal damage
- Design defects
Apart from basic inclusions and exclusions, there are other accessible opportunities like medical payments, uninsured yachters’ liability, personal effects and other assistances. There are some special covers which are offered by various yacht insurance companies in addition to the fundamental benefits stated above. These covers are:-
- Specialized coverage: this type of coverage takes care of the specific items of yacht like expensive utilities and props.
- Consequential damage coverage: it covers the wear and tear aspects caused due to mold, corrosion or rot but not due to an accident.
- Cruising extension: this extended coverage comes into existence when yacht owners plan to sail from USA. These covers are mostly provided for sailing off to nations like Mexico or Bahamas.
- Salvage cover: this cover is required when yacht’s value decreases due to damage. This coverage ranges from minor to substantial and yacht owners can freely sail over the water.
- Towing: most of the insurance providers offer towing assistance for taking the yacht out of the water to the safety.
Types of Yacht Insurance
Before taking yacht insurance, yacht owners should know about the type of yacht insurance required as per the necessity. There are two types of yacht insurance namely Single Voyage Yacht Insurance and Time based Yacht Insurance.
Single Voyage Yacht Insurance
If insurance holder has taken the insurance after having an agreement with the insurance company regarding a specific voyage, Single Voyage Yacht Insurance becomes relevant. This plan is beneficial for yacht owners who do not utilize their yacht often or keep it on mooring most of the times. At the same time, yacht owners should know that this type does not come into play when yacht comes across damage at the dock. This damage occurs if yacht gets hit by another watercraft or bad weather.
Time based Yacht Insurance
Time based Yacht Insurance is for those yacht owners who travel a lot on their yachts and do not have adequate time to carry out the renegotiation process with the insurance company. As an advantage, yachts are covered at the dock as well as in the sea. There is a particular disadvantage in the form of privilege payment.
Both types of insurances are liable for covering complete or partial damages and losses.
Major Yacht Insurance Companies
There are various yacht insurance providers in the marketplace. We believe, all of them are looking to serve their customers.. These companies are:-
Galati Yacht Sales
Galati Yacht Sales provide insurance for boats and yachts with their quick claim approval and competitive rates for damage protection. They believe in basic strategy of risk reduction, risk financing, risk retention and loss mitigation. They provide coverage for yachts up to 10 years old. There is less deductible of $25 along with complete labor and parts reimbursement. All the insurance plans are completely transferrable due to increase in their resale value.
Noah Group Insurance
Based in Wisconsin and Minneapolis; Noah Group Insurance provides various types of insurances and yacht insurance is one of those categories. Their policy guidelines include insurance against theft, medical payments, physical damage, boat covers, trail coverage, docking fenders and communication devices. They also provide specific information manuals upon the picking up of an independent agent and insurance scoring.
Allstate makes sure that their customers are protected if anything happens to their yacht on or off board. They provide insurance for both yacht owner as well as yacht. For yacht owner, they provide medical payment and liability coverage. For yachts, their benefits include:-
- Property coverage
- Repair cost endorsement coverage
- Uninsured watercraft coverage
- Premier as well as Premier Plus packages
- Agreed value options
- Emergency services coverage
Additionally, they provide coverage for personal effects, additional equipment and trailer coverage. In combination with homeowners and auto insurance, yacht owners can readily get discount offer up to 20%.