My Stolen Nation

Probably one of the oldest types of insurance cover in the world is yacht insurance. The Marine Insurance Act ensures all maritime craft like yachts are lawfully obliged to have insurance cover. As with car insurance, policies come with an excess to deter small claims and for boat insurance, this is generally quite a large sum of cash, as the intention of the insurance firm is to cover you against substantial losses instead of just scratches and dents. Overall, the only difference between motorcar insurance policy and that for a boat is the amount it is covering.

As soon as you become a boat owner in the US, most states will need you to have a yacht insurance plan in force. Houseboats are a strange case because although they are not generally moved that are required to have an insurance plan which covers pleasure yachts like cabin cruisers, sailing boats and ski boats etc. However, a speedboat is in a completely different class to say a fishing boat owing to the nature of its activities and a higher insurance rates is likely.

Almost all boat insurance policies will cover the cost of substituting the boat, engine and the yacht trailer but Actual Cash Value yacht insurance policies only pay for replacement less any boat wear and tear from the point of loss. When the craft is a complete insurance right-off then the second hand value of the yacht is used to estimate its market value. It is possible to take out Ex Gratia Insurance which will include additional extras such as emergency services to the boat, cover for reasonable repairs, removal, the motor and trailer. Partial damage repairs on the other hand are calculated by working out the full charge to restore the yacht minus deductibles.

Agreed amount value boat insurance policies mean that the owner of the boat and the insurance underwriter have decided on the cost of the boat, and in the aftermath of a total loss the owner will be covered with that amount. Another benefit of Agreed value insurance policies is that old items are replaced with new, irrespective of the value of the items being replaced. With most Agreed value plans, the yacht insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.

Essentially boat insurance covers two distinct areas: that of legal liability and that of damage or loss of possessions. The liability section covers the owner against claims by a third party if any damage is caused to that individual or his possessions by the insured boat. It is just as important to find a yacht insurance broker that looks after his customers by finding the best insurance policies and obtaining the best resolutions should they need them. Make sure your policy also has provisions for lawful protection, in case one is charged for something that is guarded under the boat insurance.