California yacht insurance
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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.
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.
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.
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.