Tips on How to Protect Your Vessel with Yacht Insurance Cape Coral

Before taking your yacht on a trip this season, you need to make sure that your yacht insurance Cape Coral is ready for the sail too. Needless to say, insuring a yacht is more complicated than insuring a home or car. Specialized coverage is needed and there are other discrepancies like liability coverage, navigation limit, aftermarket product coverage and a range of other factors. To avoid surprises, always consider the following tips.

Confirm the type of coverage you have

The mistake most yacht owners make when buying yacht insurance Cape Coral is not taking the time to understand the difference between Agreed Value and Actual value policies. They only realize their mistake when they file a claim. Working with a marine surveyor in Cape Coral can help you understand the difference.

An agreed value policy pays the limit that is shown on your insurance policy in the event of total loss. actual cash value policy will pay the current market value of the boat but after factoring in depreciation. While it will cost more to get an agreed value policy, the coverage is broader. Actual cash value policy is cheaper and economical for an inexpensive vessel. It is good to note that some lenders may require that you carry Agreed Value coverage.

Liability coverage

This is the most important and least expensive cover to get for your yacht. The ideal liability cover will include legal defense costs, oil pollution clean-up, and wreck removal. If you plan on hiring a captain or a crew for your yacht, you must ensure that liability coverage includes the Jones Act.

Medical payment

Another thing you have to do is ensure your cover includes medical payments for you and your family. The cover should be viable for your intended activities.

Evaluate your needs

Getting the right yacht insurance cover requires that you start by evaluating your specific needs. If your boat is built for pleasure and you only navigate inland lakes, there is no sense getting a cover that is specific to boats for diehard fishermen or boats that navigate the coastal waters. If you do entertain on your boat, you will need a policy that will cover such activities.

Most yachts are a serious investment. With that in mind, the cover you select must not be an ‘add-on’ from your existing policy. It should be a cover from an insurance company that specializes in yacht insurance. The policy you select must also offer sufficient coverage. That is why working with an experienced marine surveyor is very important. The surveyor will help you know how much cover you need. This information will help pick the best yacht insurance Cape Coral.

Yacht Insurance Cape Coral

Are there Items Yacht Insurance Cape Coral Does Not Cover?

As much as an insurance cover is meant to protect your investment, it is always good to note that these covers are offered by businesses. As you may already know, businesses are there to make a profit. If they are not profitable they would simply close. Insurance companies survive because most of their clients never file claims. With that being said, you have to be very careful when applying for yacht insurance Cape Coral. The worst mistake you can make is failing to read the policy keenly before signing.

The answer to the question of are there items insurance companies don’t cover is yes. Just like car insurance, marine insurance companies do not cover everything. You will only be able to claim what is in the policy. That is why it is always good to work with a marine surveyor to help you determine if your selected yacht insurance Cape Coral is sufficient.

What does insurance cover?

Your boat insurance cover will include coverage to help you in various situations.

  • Property coverage

This cover protects your vessel against theft and damage resulting from sinking or an accident. The coverage applies whether your boat is on water or land. For this type of cover, you have to choose between actual cash value and replacement cost coverage. Both have their fair share of pros and cons. To make an informed choice, always work with a marine surveyor. The surveyor will help you know which option works best for your type of boat.

  • Liability coverage

This is coverage against damage you cause to another property. This includes another boat and injuring someone else. If this happens, liability coverage will pay the cost of the damages you caused. It may also pay for damages caused by your boat’s large wake. It also covers legal fees if you are sued.

  • Medical payment coverage

If you or a passenger is injured following an accident while on your boat, the medical payment coverage will take care of medical expenses.

  • Uninsured watercraft coverage

Not every boat on the water is insured. If an uninsured boat hits you, an uninsured watercraft coverage will pay for your medical bills.

These are just some of the provisions in a boat insurance. Other add-ons include:

  • Towing
  • Boat trailer
  • Boating accessories
  • Special equipment

What is not covered by boat insurance?

As aforementioned, you need to read your policy keenly before signing because boat insurance only covers what is included. Some items that are not covered include:

  • Wear and tear
  • Corrosion
  • Manufacturer defects
  • Bug destruction
  • Faulty boat design
  • Damage from aquatic life
  • Mold damage
  • Overuse

Working with a marine surveyor can help avoid buying a boat that will attract high insurance premiums. A surveyor will also help you find the best yacht insurance Cape Coral.

Yacht Insurance Cape Coral

What is the Importance of Boat Insurance Cape Coral

Getting boat insurance Cape Coral is not always a priority for most boat owners. This is more so after having a boat for some time. Some people feel they never get to file a claim and thus start doing away with insurance covers. The fact you need to understand about insurance is that it is better to have it and never need it than to not have it and need it. If you are torn between buying boat insurance and going with it, here are the top reasons why you should consider the former option.

Peace of mind

The primary purpose of insurance is to grant you peace of mind. There is nothing worse than having to worry about paying for damages out of pocket. Needless to say, some damages can be very expensive to repair. Having boat insurance Cape Coral will give you the peace of mind that comes with knowing that your boat and finances will be protected. However, to get the best cover, you have to work with an independent marine surveyor Cape Coral. Don’t just rely on the report of the surveyor sent by the insurance company. Getting an independent survey done will help you understand your boat better and help you know which cover will be ideal for you.

Protects your finances

If your boat breaks down in the middle of the ocean or lake, you will have to pay heft towing fees. The case is the same if your boat sinks. Repairing some damages, more so after hitting submerged objects, will cost an arm and a leg. To keep yourself from getting into debt or having to ground your new boat, you need the right insurance cover to protect your finances.

Ensures family and business stability

Imagine you hit another boat and caused serious damages to it. The owner of the other boat wants compensation but you did not have boat insurance in place. To get out of this tricky situation, you may have to take out a loan. Loans can really set you back. Having an insurance cover means this will never happen. Following an accident, your insurance company will compensate the other party and take care of damages to your boat. This can save you from a lot of headaches and ensure the accident never brings you, your family and your business to the ground.  

Even where getting boat insurance is not mandatory, having an insurance cover in place is the right thing to do. The key, however, is to make sure you get the right boat insurance Cape Coral. Needless to say, the services of an independent marine surveyor can help understand your options better.

Boat Insurance Cape Coral

How to Make Yacht Insurance Cape Coral More Affordable

If you plan on buying a yacht, you probably already know that these are vessels that are longer than 27’. They are more expensive than boats and insurance companies place them in a different category mostly because they travel long distances and have more expensive components. If you recently bought a yacht, the first thing you should do is contact your insurance company for yacht insurance Cape Coral.

Getting insurance for your boat is without a doubt the best investment you will ever make. This is because having insurance means you will not only be protecting your physical asset but also getting environmental cleanup protection and medical coverage. It is better to have an insurance cover and never need it than not to have one and need it. You should contact your provider about yacht insurance Cape Coral long before your vessel leaves the factory.

The premiums and deductibles are not as friendly. That is why you need to do a couple of things to make your insurance cover more affordable.

Liaise with your own marine surveyor

The first thing you should do before applying for yacht insurance is to talk to a marine surveyor. In most cases, your insurance company will send their own surveyor. The problem with this is that this surveyor works for the insurance company and not you. To avoid getting over- or under-covered, you should work with your own boat surveyor in Cape Coral to understand the real worth of your yacht. The surveyor will also advise on the type of cover to take.

Play with the components

Premiums and deductibles have an inverse relationship. If you want to reduce upfront, monthly cash outflow, you should raise the deductible then hold your breath that you will not need insurance. There are insurers offering ‘disappearing deductible’ as their retention benefit. What this means is that if you stay with the same insurer or policy for more than 5 years, your deductibles will be reduced by 20% until you will no longer have any deductibles.

Be a model customer

The best thing you can do to avoid high insurance costs is to be an attractive customer. If you have multiple kinds of policies with an insurance company, you will start enjoying discounts. Having certain components like homeowners’ policy, even with another company, will also help you enjoy discounts.

Paying the full premium upfront instead of monthly or quarterly will also help you qualify for great discounts. Having a clean driving record and an amazing credit score will also help your case. Safer boaters always get better offers from insurers at renewal. Completing a state-approved boating safety program can also help you get great discounts.

There are many more things you can do to get better deals in yacht insurance Cape Coral. The one thing you must never forget is to involve a boat surveyor. The surveyor will help you avoid getting the wrong cover.

Yacht Insurance Cape Coral

When is Boat Insurance Cape Coral Needed?

About 40 to 50 percent of boaters are uninsured. This is primarily because of high premium costs and high deductibles. These issues are mainly caused by the lack of understanding of the details. Some boaters do not know why they actually need boat insurance Cape Coral. Whatever your reasons for not getting insurance are, this post is for you.

Accidents are unavoidable. When enjoying a cruise, it is easy to turn away for a second and end up running through the hull of another boat. Will you have the money to pay for the repairs? Can you afford to foot the medical bill of everyone on your boat and on the boat you just rammed? This is why you need boat insurance Cape Coral. While you may never need it, when an accident happens, you will be glad you had insurance. It is better to have an insurance cover and not need it than not to have one and need it.

When is insurance needed?

With that out of the way, let’s take a look at when you need insurance. Your marine surveyor in Cape Coral will help you know how much your boat is worth. This information is very important when applying for boat insurance. This is because you don’t want your boat to be under- or over-covered. Your surveyor will also be happy to inform you about the factors that will affect the premiums and which is the best cover for you.

You should get insured as soon as the vessel is titled to you. If you bought a yacht, they will be en route from the factory but already in your possession. That is why you need to get the vessel insured as soon as it is titled to you.

You should get boat insurance whether the vessel is financed or owned outright. For this, you will have to work with an agent who represents underwriters specialized in marine assets. If the vessel is financed, the lender will be added to the policy as well as the marine the vessel will be kept.

Just like your car insurance, you have to protect your boat against third-party damages. This is in case of sinking or an accident. You have to always think beyond the value of your vessel. Think about environmental cleanup protection and medical coverage. Your insurance will also cover the cost of raising and removing your boat if it sinks as well as the cost of cleanup if oil leaks. Ensure you get a policy that covers salvage and don’t forget to review liability limits that will keep an insurance cost affordable.

To get the best cover in boat insurance Cape Coral, always enlist the help of a marine surveyor Cape Coral. His input will guarantee that you end up with the best cover for your type of boat.

Boat Insurance Cape Coral

FAQ on Yacht Insurance Cape Coral

Whether you already own a yacht or plan on buying one soon, it is always good to think about yacht insurance Cape Coral. More often than not, buyers only account for the cost of buying the boat and forget about the cost of insurance, maintenance, and repairs. In this post, we will be looking at the most frequently asked questions about insurance for a yacht. Let’s get started.

What is the difference between boat and yacht insurance?

When applying for yacht insurance Cape Coral, it is important to note that you will not be approaching insurance companies that offer boat insurance. Yachts are much bigger. Boats are considered to have a maximum length of 26’ whereas yachts are bigger than 27’. As a result of this, yacht coverage is broader and more specialized. This is because yachts travel further and have unique exposures.

What should you look for in yacht policies?

Yacht insurance policies have two sections. The first is Hull insurance which is an all-risk direct damage coverage. It has a broad insuring agreement. It includes the agreed amount of hull overage. All the involved parties will agree in writing the amount of coverage. In the event of a total loss, the agreed amount will be paid. A yacht policy must include replacement cost coverage on partial losses apart from canvas, sails, outboards, batteries, and outdrives.

Protection and indemnity insurance is considered to be the broadest of liability coverages. Bearing in mind maritime laws are unique, you require coverage that addresses those exposures. Protection and Indemnity insurance further offers defense in Admiralty Courts.

What are normal deductibles?

Yacht insurance carries a percentage of insured value deductible. If the deductible is 1% and your boat is insured for $100,000, the deductible will be $1,000. In most cases, lenders offer a maximum deductible of 2% of the total insured value. You must beware of any ‘named special deductibles’ like storm damage of up to 10%.

What is breach of warranty?

This is what protects the lienholder’s interest in a boat, paying the balance that is owed and nothing more. If you breach any of the warranties in a policy, you will not be paid for the loss. Breaches include going against the promise not to go outside navigational limits, failing to use your boat for anything but private pleasure, or not using the boat in the lay-up period.

As you can see, there are so many conditions you have to satisfy when applying for yacht insurance Cape Coral. To take the complications out of the way, consider working with an experienced boat surveyor in Cape Coral. The surveyor will advise you every step of the way and let you know if you are getting adequate coverage.

Yacht Insurance Cape Coral

What Affects the Cost of Boat Insurance Cape Coral

Dock talk rarely turns to boat insurance. Boaters would rather brag about details like the bottom paint they have chosen for their boat or other obtuse nautical details. So how do you get information about boat insurance Cape Coral? Do you have to go in blind? The answer is no. There are so many resources you can use to find out more about boat insurance. You can start by talking to a marine surveyor in Cape Coral. The surveyor will offer vital information on boat insurance and what you need to do to get the best deal. In this post, our focus will be on the things that affect the cost of boat insurance.

Findings of a boat surveyor

Most insurance companies will require that you provide a survey report before they can insure your vessel. The purpose of the survey is to help the insurance company know if your boat is a good or bad risk. Insurance companies often provide a list of items that will have to be reviewed by a marine surveyor. What is included in the survey report will have an impact on whether your boat will be insured and how much premiums you will have to pay. If a boat has too many problems, you can expect to pay high premiums on boat insurance Cape Coral.

Size, value, type and age of the vessel

The bigger the boat is the higher the insurance premiums you will have to pay. The case is the same if your boat is very old. If you went for a pre-owned vessel, the insurer may require that you provide current and period survey to help them know if the boat is still seaworthy. Higher performance boats attract higher insurance premiums because of the risk that goes with them.

Where you use the vessel

Your insurance provider will want to know where you plan on operating the boat. If you will be using it in an area that is prone to hurricanes, you can expect to pay premium rates. The good news, however, is that there are some endorsements available for certain geographies and seasons. For example, you can get ‘Port Risk’ insurance if you will not be using the boat. If the boat will be stored ashore, you can qualify for a reduced cost.

Chartered and professionally crewed vessels

Do you plan on using your boat for commercial purposes? If you are, you will pay higher premiums for it. This is because there is a liability for carrying paying passengers and the boat will get more use. Licensed crew members are required for chartered vessels and this has to be added to the policy.

As you can see, there are many things that have to be looked at when calculating the cost of boat insurance Cape Coral. Never rush the process. Take time to understand your options before making a decision. An experienced marine surveyor in Cape Coral can be a great source of information.

Boat Insurance Cape Coral

Yacht Insurance Cape Coral – FAQ on Boat Insurance

One of the reasons boat owners reach out to marine surveyors is to get insurance C & V surveys done. Regardless of the type of insurance you need, your insurer may require that you submit a survey report. The purpose of the survey report is to help the insurer know that they are not insuring a doomed vessel. In most cases, you will not qualify for yacht insurance Cape Coral without submitting a survey report.

The purpose of this post is not to focus on what is involved in an insurance survey but rather to answer the frequently asked questions about boat insurance. Let’s get started.

Which is the best coverage for a boat?

When what you need is a comprehensive cover, you should go for the ‘All Risk’ policy. This policy provides coverage for all types of losses apart from those excluded specifically in the policy. In most cases, the excluded items include wear and tear, marring, scratching, manufacturer’s defects, animal damage, freezing and ice as well as defects in the design.

How much should you insure your boat for?

When applying for yacht insurance Cape Coral, it is highly recommended to insure your vessel for the same amount it would cost you to get it replaced with another vessel that is of the same kind and quality. This type of insurance is referred to as ‘Stated Value’ or ‘Agreed Value’ coverage. If you ever experience a total loss, the cover will pay the full amount.

You must be careful with the ‘Actual Cash Value’ coverage. With this coverage, if there is ever a total loss, the cost of replacement will be minus the cost of depreciation.

Who can operate my boat?

With most policies, anybody can operate your boat provided you give them permission. There are, however, some exceptions more so when it comes to high-performance vessels and personal watercraft. Always take time to read through the insurance policy before signing it. You also need to note that having too many drivers will lead to an increase in the premiums you pay.

What is the difference between yacht insurance and boat insurance?

Boats are generally considered to be no bigger than 26 feet. Yachts, on the other hand, are vessels that are larger than 27 feet. As a result of this, yacht coverage will be broader and more specialized. This is for the simple fact that larger boats travel long distances and face unique exposures.

When applying for yacht insurance Cape Coral, you need to keep in mind that the terms are not as straightforward. If possible, call in a professional such as your attorney or boat surveyor to help you review the policy before signing.

Yacht Insurance Cape Coral

What You Need to Know About Boat Insurance Cape Coral

Applying for boat insurance Cape Coral is not as straightforward as you may think. There is a lot that has to be done including getting a survey report from a marine surveyor. You have to make sure the surveyor is approved by the insurance company you plan on using. You then need to take time to go through the insurance policy. Take note of what is included and what is excluded. In this post, we will be taking a look at the main points you have to keep in mind when applying for boat insurance.

What is covered by a boat insurance?

Understanding what will be covered by the boat insurance Cape Coral is the most important thing. When deciding whether to offer a policy or not, the insurer will consider a number of factors among them:

  • Length of the boat
  • Age
  • Value
  • Speed/horsepower
  • Condition
  • Where the boat will be used primarily
  • Number of owners
  • Type of boat
  • If a boat is a primary residence or not

Your boat surveyor will help you understand how all the above factors have to do with boat insurance.

When you need the best protection, what you will need is an all-risk policy. It is, however, good to note that an all-risk policy will not cover every type of loss. It covers any risk that is not omitted specifically in the policy. The key items that are excluded from an all-risk policy include:

  • Denting
  • Wear and tear
  • Animal damage
  • Design defects
  • Ice & freezing
  • Manufacturer’s defects
  • Marring

Types of boat insurance

You will also need to understand the various types of boat insurance that are offered. The most common types are:

  • Specialized coverage. This covers something that is specific on your boat such as navigation equipment or a costly prop
  • Salvage. The coverage pays to get your boat removed as a result of minor to substantial damage.
  • Consequential damage. This covers loss resulting from wear and tear and not an accident.
  • Towing. Towing a boat can cost about $400 per hour. This type of insurance covers this cost.
  • Cruising extension. Do you plan on leaving the United States to the Bahamas or Mexico? If you do, you should consider applying for a cruising extension policy.

Insurance claims

After applying for insurance, you always hope you will never use it but it always feels good knowing it is there. While you don’t need to carry proof of insurance on the boat, it is good to have claim information close for times of emergency. You also need to speak with your boat insurance Cape Coral agent to learn how the process of filing a claim goes. Ask if the agent will be available to help deal with the aftermath of a claim such as making plans for salvage or towing.

Boat Insurance Cape Coral

What is Covered by a Boat Insurance Cape Coral?

If you have a boat, you know nothing is more important than the cool breeze and warm sun on the water. This can, however, be taken away if your boat is damaged. Considering it costs a lot of money to handle repairs, you need to apply for a boat insurance Cape Coral to protect your asset and finances. Buying boat insurance will give you and your passengers the peace of mind they deserve while taking a ride on your boat.

Insurers offer varying products when it comes to boat insurance Cape Coral. Understanding what is covered and what is not will help you better understand your options. Working with a marine surveyor in Cape Coral will further help you get a comprehensive insurance survey and give you a complete list of everything that will be covered.

  • Property coverage

Your policy may include property coverage. This protects your vessel against theft and damage due to sinking or accident. The coverage applies whether the boat is on land or on water. You will have to choose between replacement cost coverage or actual cash value. A marine surveyor will be able to let you know how much your boat is actually worth. He can also advise on whether to go with actual cash value coverage or replacement cost coverage.

  • Liability coverage

The purpose of this coverage is to protect you against damages caused by your boat to someone else’s property such as injuries to someone or damage to another vessel. When this happens, the liability coverage will pay for the damages. Liability coverage may also include coverage for problems that are caused by your vessel like a large wake. It also covers legal fees if you are ever sued.

  • Medical payments coverage

If you or a passenger on your boat gets injured, your medical payments coverage policy will take care of the bills. The coverage covers injuries that occur after a boating accident.

  • Uninsured watercraft coverage

Not every boat on the water is insured. That is why it is a good idea to get uninsured watercraft coverage. If you are ever hit by a boat that is uninsured, the uninsured watercraft coverage will pay for medical bills.

As aforementioned, as you apply for boat insurance Cape Coral, you have to remember that insurers are not the same. You also should never assume what is covered and what is not. The reason you need the input of a marine surveyor is so as to understand the exact condition of your boat before purchasing an insurance cover. When buying a used boat, a boat survey will further help you know if you are making a wise investment or not.

Boat Insurance Cape Coral