How boat insurance protects you
Property coverage can help pay to repair your boat after an accident or replace it if it’s stolen. Boat and yacht policies can include several coverages that protect you, the guests you invite on board, and other people’s property. If you cause an accident that damages someone else’s boat or property, or injures someone who isn’t on your boat, liability coverage can help pay the costs.
Hull coverage and agreed value
You’ll establish a dollar value for your yacht for physical damage — known as hull coverage. This value is agreed between you and the insurance company and written on your policy as the Agreed Value. For a new vessel it’s usually the purchase price; for a used boat, a survey often helps establish current value.
With an agreed value on your policy, you know the settlement amount if you have a covered total loss from vandalism, fire, theft, collision, wind, sinking or other covered causes. Some owners decline coverage options to save a little premium and regret it after a loss — most of our yacht clients choose a quality comprehensive policy that minimizes out-of-pocket costs.
Home port and navigational limits
Insurers will ask where your yacht is kept during different times of year — moored at a marina or dock, or stored on land (“on the hard”). They’ll also ask where it will be used over the next 12 months.
Most policies define specific areas of operation, called navigational limits. Accurate information makes sure you’re properly covered at a competitive price — and let your agent know whenever your navigation area changes.
This guide is general information, not a policy. Coverage, limits and exclusions vary by carrier and state — your policy documents are what apply. Ask us about your specific situation.