This guide will help you understand the basics of yacht insurance

You need yacht insurance if you own a vessel longer than 26 feet. If it’s less than 26 feet long, you will need boat insurance.

Your investment will be protected from theft, damage and other factors that could cause partial or total loss. Read more now on yacht sales mallorca

What should you look out for when choosing an insurance policy for a yacht?

1. Comprehensive cover. Some policies only cover accidents and damages. Some policies cover fire. Others only protect against vandalism or theft.

It is obvious that getting just one type of insurance will be cheaper. You can further reduce the cost of your policy if you store your yacht in a boathouse.

How can you tell which of these risks is most likely to affect your yacht? It is best to choose a policy which covers your yacht against all three possible risks.

2. Third-party liability. The biggest problem you will face with your yacht is third-party liability. If your yacht is stolen, damaged, or burns down completely, you can choose to just accept the loss.

You cannot do nothing if, on the other hand you or your yacht damage property of others, or cause injury to another person. You’ll have to pay.

Third-party insurance will save you the trouble of having to pay a large sum at once to avoid being sued. You must have third-party coverage of at least PS2,000,000 in the UK before sailing your yacht.

Third-party insurance is only applicable when your yacht’s on the water. If your yacht causes damage to someone or something while it is being transported to the water from your boathouse, then your vehicle insurance should cover this, and not your yacht policy.

3. New-for-old cover. Your insurance will cover the cost of a new yacht if something happens to your old one. Will your insurance only cover the value at the time of the loss or damage?

With a “new-for-old” policy, you can replace your old boat with a brand new one. Be aware, however, that some companies have a maximum age limit for yachts – usually three years – to qualify for this type of coverage.

4. Laid-up period. You may not be covered by some insurance companies if you sail a yacht during a particular period of the year or when boatyards are busy. Verify the requirements of your insurance policy by checking your policy.

5. Claim ease. A policy is only worth what you can do with it. Talking to other sailors about their experiences is the best way to locate an insurance company who makes it easy to submit claims.

If your yacht is ever involved in a serious incident, you will need to file a claim as soon as possible. Report the incident first to the police if it involves theft, arson or vandalism. You will need the crime reference number on your claim form.

Leave a Reply

Your email address will not be published. Required fields are marked *