When you classify for boat insurance, boats are considered to be 26' and smaller, and yachts are 27' and larger. Yacht insurance coverage is more specialized because larger boats travel further and have more unique exposures.
What is the best boat insurance coverage for your boat?
It is best to have what is known as an "All Risk" policy. This boat insurance will provide coverage for all types of losses except those specifically excluded in your policy.
Exclusions may include
There are two main section s of a yacht policy.
HULL INSURANCE is all risk direct damage coverage that creates a very broad insuring agreement. It will include agreed amount hull coverage which means all parties agree at the time the boat insurance policy is written on the value of the vessel and that value will be paid in the event of a total loss. A true yacht insurance policy should also include replacement cost (new for old) coverage on partial losses, with the exception of sails, canvas, batteries, outboards and sometimes outdrives, which are depreciated.
Protection and Indemnity boat insurance is the broadest of all liability coverages. You will need boat insurance coverages that are designed for those exposures.
Exclusions on a yacht policy generally include wear and tear, gradual deterioration, marine life, marring, denting, scratching, animal damage, osmosis, blistering, electrolysis, manufacturer's defects, defects in design, and ice and freezing.
You should insure your boat for the amount it would cost you to replace it with the kind and quality you would expect. Usually you should insure it for the purchase price plus additional equipment (and tax if you want).
A boat insurance and yacht insurance policy usually carries a percentage of the insured value deductible, for instance a 1%, deductible means a boat insured for $100,000 would have a $1,000 deductible. Most lenders allow a maximum deductible of 2% of the insured value.
These standard boat insurance coverages have standard deductibles and average limits: Medical payments, no deductible, $5,000 limit Personal effects, $250 deductible, $1,000 limit Uninsured boaters liability, no deductible, $10,000 to $300,000 limit Towing and assistance, no deductible, $500 limit Fishing equipment, $250 deductible, $1,000 limit
That is boat insurance coverage that primarily protects the lienholder's interest in your boat, such as the bank, paying off the balance owed but nothing more. If you breach the warranties in the policy, such as promising not to go outside your navigational limits, not to use your boat during the lay-up period, not to use your boat for anything but private pleasure use, and you do NOT have this coverage and experience a loss, you don't get paid for that loss and neither does the lender. You could end up making payments on a boat you cannot use.
Voyager is licensed in all states except AK, HI, ID, SD, WY
CA Lic. #OB99487
