Yachts are obviously very expensive to buy and are valuable items. Therefore it is important to ensure that they are fully insured. Insurance cover should include such things as theft, damage, explosion – always a risk where a lot of fuel is being carried – and outright loss.
It is important to know what kind of cover is required for your vessel. The marine insurance industry classes vessels over 26 foot as yachts and they qualify for yacht insurance. If they are less than 26 foot they are eligible for boat insurance cover.
In order to adequately insure your yacht, you need assess how much it would cost to replace the vessel if it were lost or completely destroyed. Then it is a case of finding out how much it would be to replace the items and equipment on board.
You will also need to make provision in your cover if the yacht is docked in a region that is susceptible to violent weather conditions such as hurricanes. It is also important to consider indemnity coverage in the event that your vessel causes damage to someone else’s boat or property through a collision.
Yacht insurance will save you a massive outlay in cash should your craft be lost, stolen or cause third party damage. Therefore, like with any other valuable object, it is worth having. But of course, it will be costly, depending on the value of your yacht and the type of cover purchased.
Other factors will also determine the cost of your cover. These include such things as the length of the vessel, its age, where it is going to be sailed, and the type of engine it has. However, there are several factors which can lead to a discount in premiums. They include the provision of on board safety equipment, whether the owners have taken safety courses and if the yacht is laid up for a long period.
Depending on your type of yacht insurance it may contain certain warranties which restrict its use. A navigational warranty will limit the amount of time you can sail your vessel in certain parts of the world. Under a lay up warranty your yacht must be docked during certain times of the year.
Yacht insurance is vitally important for owners should anything unforeseen happen to what is a very expensive item of property. Should you take the time and care to insure your craft properly, the benefits of insurance will then become apparent should misfortune strike. But hopefully you will soon be out at sea sailing again.
About the author
Wilson yacht management company offer the Owner and Captain a full range of management services customised to individual requirements and manage yachts
ranging from 30 meters (100ft) to 90 meters (300ft)+. They offer a full yacht insurance management service and have over 15 years
experience as a yacht management company.