Category: Yacht Insurance Cape Coral

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

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

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

When you need yacht insurance Cape Coral, one of the most important things you should do is get a boat survey. While every insurance company will have unique guidelines on how a survey needs to be done, it is always good to ask them directly. It is a common practice that an insurance company will require an out-of-water survey to be done if your vessel is more than 10 years old or has been moored permanently. The out of water survey is considered to be the most comprehensive survey.

Another reason why you may be required to get a boat survey when applying for yacht insurance Cape Coral is if your boat is either old or of an unknown make or model. The insurer will require a survey to confirm that the boat has been constructed properly and that it was constructed by a well-known or reputable builder.

Will you need a survey if using the same insurance company used by the seller of the boat?

It will depend. Some insurers will be comfortable with using an existing report if the survey was done by the current owner. However, in most cases, you will be required to get a new survey. This is because a boat survey is a snapshot of the boat’s condition at the time the survey was done. A lot can change within the course of a few months.

Can you get an in-water survey alone?

The short answer is no. There are, however, some insurance companies that will accept an in-water survey only. The reason out-of-water surveys are recommended is that they are thorough. They help the surveyor access all the areas of a yacht. As a result, insurers are able to get a more comprehensive report about a boat with out-of-water surveys. If a survey was just an in-water survey, the insurance company will not be able to know if a problem was caused by existing damage or not.

What is the difference between pre-purchase survey and an insurance survey?

There are boat sellers who show insurance surveys and try to pass them off as pre-purchase surveys. What you need to understand is that a pre-purchase survey is a more thorough evaluation of a vessel. It involves a comprehensive inspection of the boat including out-of-water inspections and sea trials. The surveyor will also look at the condition of the engine, operation of electronics, navigation gear and lighting.  An insurance survey, on the other hand, only considers if a boat is an acceptable risk to insure. With that in mind, never accept an insurance survey as a pre-purchase survey.

Last but not least, you have to understand the difference between agreed value versus market value. An agreed value does not fluctuate. Talk to your insurer about this when applying for yacht insurance Cape Coral.

Yacht Insurance Cape Coral