Policy Options and California Yacht Insurance

California yacht insurance

Those interested in buying a yacht for recreational sailing will often purchase one of these powerboats, ranging in length from 33 feet to hundreds of feet long. Those larger yachts often come with multimillion-dollar price tags, but in general, you can expect to spend anywhere from several hundred thousand dollars to about $1 million. This is a lofty expense and should be protected with California yacht insurance.


Deciding on a policy


Insurance coverage for yachts is standard under most circumstances. Perhaps the best way to protect your investment is with an agreed value policy with physical damage protection for the hull, comprehensive coverage for other kinds of damage or loss, and standard liability coverage. Yet, there are significant differences in yacht policies that need to be addressed to fully protect your investment.


Consequential damage


The first coverage to give serious consideration to is consequential damage. This applies whenever a yacht is disabled by engine failure and suffers resulting hull damage. Although hull damage is covered in most policies (as a result of a storm or other event), it may not be when it is a consequence of mechanical failure. That makes it important to ask for consequential damage coverage to ensure your craft will be repaired to its previous condition.


Parts Depreciation


When youve owned your yacht for several years or longer, and you wind up experiencing a loss you must now deal with depreciation in the value of parts. Thats because the parts lose value as the boat ages, and most insurers will cover only the depreciated value of the part and not the full cost of replacing it. Different parts depreciate in value at different rates, and insurers also vary in how they factor depreciation for a part.


You have a valuable watercraft and you deserve the type of protection youve come to expect. Speak to your agent about any questions or concerns you may have regarding your california yacht insurance.