Selecting the Best Insurance for Your Boat
Hull coverage normally encompasses the hull and all items on the trawler or motor yacht that are permanently attached or are on the trawler or motor yacht and used in the regular operation of the boat, i.e. electronics, TV"s etc.ÂOften you can buy hull insurance at Agreed Value, meaning that you and your insurance provider "agree" on the value of your yacht. if your boat is a complete loss you will be covered for that amount on the Declaration Page of the Policy. Your agreed upon value remains with your boat.
There is also, Actual Cash Value (ACV). This means that if your vessel was totaled in a loss you would be tendered a depreciated settlement ð€“ the going market value of trawler or motor yacht. be careful. several marine insurnace companies are fond of offering these policies and many buyers are not fully conscious of what they are buying. With this policy, your cash value will drop each year you own her.
But most losses are only partial losses and you should expect a depreciated settlement on that as well. While Actual Cash Value will be less expensive, beware, you may also find that if you have a claim you are getting far less than you bargained for.
Be certain to talk to your agent about how your loss would be established for both a complete loss and a partial loss and what would be subject to depreciation. Often items like canvas, cushions, engines etc. are subject to depreciation. Usually wind storm canvas damage is not covered by a policy.
It"s also essential that the policy you buy cover salvage, fuel spills and wreak removal as these issues come with yacht ownership .  Often the recovery of a vessel could exhaust your policy limits were it not for these additional coverages often included in the better marine policies.
Recreational marine insurance polices will always include cruising boundaries. It is usually a warranty of the policy and therefore extremely important that it is correct on your policy. A warranty is very strong language in a policy and if you are outside the sailing limits shown on the declaration page, you probably would not have any insurance should you sustain a loss.  Make sure you speak with your agent about this matter and make sure you have the coverage you need; keeping in mind this is a critical factor in determining the premium.
Lay-up dates are also something you will want to discuss with your agent. If you are in hurricane prone areas, a layup will often be covered by the policy to protect the trawler from harm by an active storm. You may be entitled to some premium decrease if the trawler or motor yacht is laid up out of water during the winter months too. Some other things that may result in a reduction in costs are boating classes,a Coast Guard Captain License, and equipment on your trawler or motor yacht such as anti-theft devices. Â
Additionally, many boat policies will have Longshore and Harbor Workers Compensation which would cover you should you become legally obligated under the Longshore and Harbor Workers Compensation Act for any bodily injury arising out of the ownership, maintenance or use of a yacht. Jones Act coverage would also be required if you hire crew or have a full-time paid Captain.
In addition, look at the Exclusion segment of the policy so you know what is not covered. Â
Since yacht insurance is a different animal, you will want to work with an Agent that understands yachting and knows the marine insurance industry, so they will know how to guide you.