6 Tips for Buying Yacht Insurance

As unbelievable as it sounds, insuring your new yacht is not much more difficult that buying car insurance. In fact, many of the same type of provisions are available with yacht insurance as car insurance. You can purchase collision, various types of liability, uninsured yacht, and medical insurance. With a few notable exceptions, yachts carry the same insurance as your car.

Begin your search for yacht insurance by tracking down insurers who are reputable when claim time comes.

This works the same as finding a good company to insure your home. Ask other yacht owners about their claim history and receipt of payments. Check with people who work with yachts such as repair shops and mechanics. It is a good idea to ask around where yachts are kept in marinas. The workers there hear a lot of the owners as they comment on their experience with insurers both regarding payment and premium costs.

You sometimes have to negotiate the amount of collision coverage for your yacht.

Because yachts are such expensive items, their true value can be up for discussion. Before writing the check for a new policy, make sure of the amount that this company is willing to fork out in the event of a total loss. Like real estate, you do not want to under insure your yacht, but buying too much can increase premiums without increasing the amount you will receive in the event of a loss. You may have to hire an independent appraiser if you have problems coming to terms with the insurer.

Insure your yacht for fuel spills and other environmental damage that can occur in an accident.

The government requires the owner of the vessel to absorb the cost of any clean up. Many companies will write coverage for this up to about a million dollars. It might pay you to investigate the exact costs of these clean ups for the area where you expect to operate your yacht most often.

If you plan to travel internationally with your yacht, you may need to buy crew insurance.

You will want to consider this type of insurance to provide liability for your own assets. However, your crew may have problems finding insurance that will cover medical needs that arise in foreign ports. Purchasing crew medical and liability insurance will protect you and your crew when out of the country.

You will want to buy enough general liability insurance to cover lawsuits.

As with your car and house, you need to have an understanding of your true financial risk. Always purchase enough liability insurance to pay for damage and protect your current and future assets as much as possible. Include bodily injury coverage in this liability insurance.

Make sure that you are insured against other comprehensive items.

Theft insurance is important both for the boat itself and for your belongs that are stored there. You need insurance against vandalism. Make sure that your insurance will cover you from storm damage of all types.