Yachts and cabin cruisers provide a luxurious way to be on the water. However, owning a valuable watercraft such as a yacht or cabin cruiser means you must have the right insurance in case of physical damage, lawsuits, and other possible disasters. Because of their price, yacht and cabin cruiser repair or replacement are likely to be very expensive, which makes having the proper coverage crucial for boat owners.
Luckily, an independent insurance agent can work with you to create a customized yacht insurance policy for your specific watercraft, its value, and how you use it. They'll get you set up with the right type and amount of coverage for your unique vessel. But first, here's a breakdown of yacht and cabin cruiser insurance, what it covers, and why it's necessary.
What Is Yacht or Cabin Cruiser Insurance?
Yacht or cabin cruiser insurance is a specialized type of boat insurance designed for luxury boats. Yachts and cabin cruisers may be bought for personal or commercial use, so insurance policies must accommodate each of these needs.
While yachts and cabin cruisers, like most boats, depreciate over time, they still generally have a much higher value than the average watercraft. Because of their high values, a standard boat insurance policy may not provide enough coverage for your vessel.
Why Do I Need Yacht or Cabin Cruiser Insurance?
A yacht can cost between $300,000 and several million dollars. A 35-foot cabin cruiser can range from $80,000 to $500,000. Since purchasing one of these luxury vessels is a big investment, having the ability to insure your personal watercraft (PWC) can ease your mind if there's an accident or your boat needs repairs or replacement after a total loss.
Insuring your yacht or cabin cruiser is not just about the boat. If an injured party files a liability claim against you for a bodily injury or property damage that occurs on or near your boat, you'll need to have enough coverage in place to protect your PWC, home, savings, investments, and future income. Assessing your financial situation can help you determine how much yacht or cabin cruiser insurance you need.
When Is Yacht or Cabin Cruiser Insurance Required?
You might be required to carry yacht or cabin cruiser insurance. If you finance the purchase of your yacht or cabin cruiser through a lender, you'll likely need to buy yacht or cabin cruiser insurance.
Further, many marinas require that you have watercraft insurance in order to slip your boat at the marina. Check your local marina's guidelines, and be sure to learn about your state’s laws and regulations for marine insurance.
What Does Yacht or Cabin Cruiser Insurance Cover?
The components of yacht or cabin cruiser insurance are similar to standard boat insurance coverage. You'll need to determine if you want a policy that offers full replacement coverage instead of actual cash value in case your PWC is destroyed. The most common coverages found in yacht or cabin cruiser insurance are:
- Marine liability coverage: This can pay for lawsuit expenses, property damage, and medical expenses if a third party suffers a bodily injury or personal property damage on or near your boat.
- Uninsured boaters insurance: This can pay for repairs to your yacht or cabin cruiser and other property as well as medical payments if you're involved in a collision with an uninsured or underinsured boater.
- Charter boat coverage: Fishing guides or those who run charter yacht or cabin cruiser fishing operations are often required by law to have this special coverage.
- Storm haul-out insurance: If there's an NOAA-named storm in your area, this coverage can assist with the costs of hauling or safely securing your boat.
- Gear and fishing tackle insurance: Hull insurance protects the components of your boat from loss and damage, but you may also need gear and fishing tackle insurance to protect your expensive fishing equipment.
- Fuel spill and wreckage clean-up insurance: Wreck removal coverage can help pay for the cost of cleaning up fuel spills and for professional towing services if your boat becomes disabled on the water.
- Hull coverage: This can pay for physical damage to your boat, its engine, navigation equipment, machinery, and other components on board.
You might also want to add special coverage against any losses you may incur during lay-up periods when you're not using your yacht or cabin cruiser. An independent insurance agent can work with you to determine the appropriate coverage for your needs. They'll help you build a complete yacht or cabin cruiser insurance policy with every type of protection necessary.
Is Yacht or Cabin Cruiser Insurance Different from Standard Boat Insurance?
Yacht or cabin cruiser insurance provides similar types of coverage as standard boat insurance. However, yachts and cabin cruisers have some specific differences from standard boats, and owners of these watercraft generally need certain protection that standard boat insurance doesn't provide. For example, a yacht or cabin cruiser policy may offer coverage for hauling your vessel longer distances than typical boat insurance.
Also, deductibles for yacht and cabin cruiser policies tend to be very flexible in contrast to standard boat policies, which often have set options such as $250, $500, or $1,000. In addition, yacht and cabin cruiser policies can include coverage for raising and removing a sunken vessel, while other boat policies generally don't include this coverage.
However, similar to standard boat insurance, yacht or cabin cruiser insurance typically offers additional coverage for your vessel's equipment and components, such as outdrives and outboard motors.
What's Not Covered by Yacht or Cabin Cruiser Insurance?
Yacht and cabin cruiser policies tend to have similar coverage exclusions to standard boat insurance. Don't expect your policy to cover any of the following:
- Malicious or intentional acts against others
- Collisions with marine life
- General wear and tear to the boat, gear, and equipment
- Manufacturing defects
- Mold or mildew damage
- Hull corrosion
Your independent insurance agent can help you determine the exclusions of your specific yacht or cabin cruiser insurance policy.
How Much Does Yacht or Cabin Cruiser Insurance Cost?
The cost of yacht or cabin cruiser insurance can vary based on a number of factors, such as the insurance company that underwrites your indemnity coverage. Your premiums can be impacted by the following:
- Your location
- The make and model of your boat
- The engine size of your boat
- How your boat is used and stored
- Deductible amounts, coverage options, and limits selected
An independent insurance agent can help you get a boat insurance quote today from one of the best boat insurance companies. They'll help you find affordable yacht or cabin cruiser insurance near you.
An Independent Insurance Agent Can Get You a Quote for Yacht or Cabin Cruiser Insurance
A local independent insurance agent can learn about your yacht or cabin cruiser insurance needs and gather multiple quotes for you from several different companies. They'll help you compare coverage options and rates and help prevent gaps in your coverage that leave you exposed to unnecessary financial risks.
Your agent can assist you with every aspect of your insurance and be your point of contact if you need to file a boat insurance claim. They'll also be there down the road if you need to update your coverage.
Sources
https://www.yatco.com/types-of-boats/new-used-cruiser-boats-for-sale/
