Being a yacht owner is one of the best feelings you can have, and when you get on your boat you will get all the freedom that you’ve ever needed. However, with this type of pleasure, you also get many responsibilities, and accidents happen no matter how careful you are. If you want to be able to forget about any problems that may arise, and if you don’t want to overthink every move you make, you need to get insurance for your unit. Keep on reading if you want to learn some tips that will help you understand how does yacht insurance work.
1. There are two main basics
The first thing you need to know about this type of coverage is that there are two main basic sections that you need to pay attention to when getting the policy. The first one will cover the physical damage of the unit in case there is something wrong or if you get in an accident. As we will talk later, you should know that not all types of damage are covered when you pick the basic policy, so depending on your habits and needs, you need to pick the right plan for you.
The second section that you should carefully check is the liability section, and as the name suggests, this will be the part that is not directly connected to the physical part of your yacht. The liability section is the one that covers things including injuries, damages to other people’s properties, and even accidents that result in death. You need to be extremely careful about this part of the coverage, as these are things that could make you spend a lot of cash, or that could even put you in serious trouble.
2. Be careful of what the insurance covers
You should know that when signing the policy, you need to be aware of what is covered and what you will get your money back in case you need to replace or fix your yacht. There are some types of coverage that will take care of everything when it comes to physical damage, but those are usually premium plans that you need to pay for a lot more.
When it comes to the basic things you will get, you will be getting your money back in case there is an accident, or if there is some type of damage when it comes to the unit and the machinery. However, you should know that in this case, you won’t be getting the coverage for everything. More often than not, you will get reimbursed if there is any damage to the engine, sails, and the machinery that is required to operate the unit.
Talk to the agent about the things that are not covered with the basic plan, and depending on that, you should be careful about picking the best plan for your needs.
3. Main benefits
Now let’s talk about the benefits of getting the coverage. Not everyone thinks that this is required, and many people don’t understand the need of getting insurance for your yacht.
As you can see if you click here, there are first many different types of coverage that you can choose from, so this process is completely scalable, and you don’t need to go with the one size fits all deal. You can get the exact insurance that you need depending on your habits, and you don’t need to waste money on things you don’t need.
With the coverage, you will get reimbursed in case you get in an accident, you will get coverage if you need a lawyer to handle your case, and you cannot afford one, you will be able to fix your boat if there is any physical damage on it, and there is also an option to get a personal accident cover.
Once again, all these things are scalable, and there are a lot of other benefits and things that you can get in case you choose premium or platinum level insurance.
4. There are always exclusions
You need to understand that there are always going to be exclusions, and it is pretty difficult to find a service that covers anything and everything you may need. In most cases, you don’t need that type of coverage, and chances are, you will never use it or need it.
However, there are things that you will not get reimbursed for, and they will vary depending on the company you choose. The biggest thing you need to be aware of is how much money you will get back in case you get in an accident and in case there is damage done to your unit. There is always a specific sum that you will get back, and in case the damage is larger than that, you will need to pay for the rest on your own.
In case there is mechanical damage, wear, and tear, most of the policies will not cover that and you will not get any cash back. You also need to be aware that people above a certain age will not be able to be part of the policy, but once again, this all depends on the type of coverage you get.
5. Understand the factors
Finally, we are going to talk about the coverage factors and things that you should be aware of when choosing the right type of coverage for your boat.
The first thing that will make the biggest difference is the age of the unit and its current state. The older the boat is, and the more likely it is to get easily damaged, the more cash you will need to pay to insure it.
The size, as well as the horsepower and the speed of the unit, are deciding factors that should be considered when getting the right type of coverage, and you also need to think about the exact type of unit that you own. If you are the first owner of the unit that will also make a difference in getting the policy, so talk to your agent in case you got a second-hand yacht.
These are some of the few things that will help you with understanding how yacht insurance works. Note that you have to talk to your agent before choosing the best one, and you should always consider different types, policies, and services before you opt for the best one.