Making Smart Decisions on Purchasing Boating Insurance
Since a homeowner’s policy is usually limited to boats under a certain size or value, and most of these policies typically don’t have the necessary provisions to cover the types of losses that may occur with a yacht or larger vessel, California yacht insurance is your best bet. Even if not required, boat insurance is designed to address the specific needs of boat owners like you.
There are policies available in the marketplace that will allow you the option of insuring your vessel for its current market value in the event of a total loss. This policy is known as Actual Cash Value (ACV), or you may opt for an agreed value policy, also known as “stated value”. Most policies are “All Risk” policies that provide coverage for a broad array of concerns that you may face, including theft, vandalism, lightning strikes, fire, grounding of your vessel or sinking, as well as any lost or stolen belongings stored on the yacht.
Protecting your valuable property
A major concern for many owners is their personal property. Purchase coverage that will protect these personal items, such as equipment used for water sports, fishing gear, and electrical equipment (stereos, communication devices, etc.). Your policy should include provisions for towing your yacht in the unfortunate event it sustains serious damage and is no longer seaworthy.
Many companies will give you the option on a policy that does not insure physical damage to your boat, and only provides a specified amount of coverage for your liability to others in the event of an accident, or protection from uninsured boaters. Read your policy carefully and purchase additional insurance to address any risks not covered.
Owners of older vessels may opt to have little or no coverage in place. But keep in mind that a collision with even a small powerboat can cause serious injuries. While you may not be found liable for those injuries, you may still end up spending a significant amount of money in legal fees if ordered to defend yourself in a court of law.
Policies intended to cover liability only are not all that expensive. It makes sense to get a quote on several different California yacht insurance policies that will allow you to make an informed decision based on the coverages available versus the cost to insure.