There are a lot of misconceptions about yacht insurance out there.
Here are 15 myths that you should know about before you purchase a policy.
1. Yacht insurance is too expensive:
This is one of the most common myths about yacht insurance. While it is true that yacht insurance can be expensive, the cost is often worth it given the value of the asset you are insuring.
2. My homeowners insurance will cover my yacht:
Most homeowner’s insurance policies exclude coverage for boats and other watercraft. You will need to purchase a separate policy if you want to be fully protected.
3. I don’t need insurance if I’m an experienced captain:
Even the most experienced captains can make mistakes that could result in damage to their yacht. Insurance protects you from financial losses in case of an accident.
4. I only need liability insurance:
Liability insurance covers you if you accidentally damage someone else’s property or injure another person. It does not cover the damage to your own yacht. You will need to purchase additional coverage if you want protection for your own vessel.
5. I don’t need insurance if I keep my yacht in a secure marina:
Marinas and other storage facilities often have their own insurance policies that cover the vessels stored on their premises. However, these policies usually have limits and may not cover all types of damages. It’s always best to have your own policy in place to be fully protected.
6. My yacht is too old to insure:
Most insurance companies will insure yachts of any age. However, older vessels may be subject to higher premiums or limited coverage options.
7. I don’t need insurance in the off-season:
If you plan on using your yacht during the off-season, you will need to maintain your insurance policy. Many insurers offer discounts for boats that are kept in storage during the winter months.
8. I don’t need insurance if I only use my yacht for leisure:
Even if you only use your yacht for recreational purposes, it’s still a good idea to have it insured. Accidents can happen at any time, and you could be held liable if someone is injured while on your vessel.
9. Yacht insurance is a waste of money:
Yacht insurance is an important investment that can protect you from financial losses in the event of an accident. It is not a waste of money.
10. I don’t need insurance if I’m a careful captain:
No matter how careful you are, accidents can still happen. Insurance protects you from the financial consequences of an accident that is your fault.
11. My policy will cover any damage my yacht sustains:
Most policies have exclusions for certain types of damages, such as wear and tear, cosmetic damage, and intentional damage. Be sure to read your policy carefully so you know what is and is not covered.
12. I don’t need insurance if I have a warranty:
Warranties only cover manufacturing defects and usually exclude coverage for accidental damage. You will still need insurance to protect your yacht from risks such as collisions, storms, and theft.
13. Yacht insurance is only for wealthy people:
Anyone who owns a yacht should have insurance. The cost of the policy is often based on the value of the vessel, so even if you don’t consider yourself wealthy, your yacht could still be worth a lot of money.
14. I don’t need insurance if I charter my yacht:
Charter companies typically require their customers to have their own insurance policies. Even if you only charter your yacht occasionally, it’s still a good idea to have coverage in place.
15. I can cancel my policy at any time:
Most insurance policies have cancellation fees and other penalties if you cancel before the end of the policy term.
Yacht insurance is an important investment for anyone who owns a boat. It can protect you from financial losses in the event of an accident, and it is not a waste of money. Be sure to read your policy carefully so you understand what is and is not covered. If you have any questions, be sure to ask your insurance agent.