Did you recently buy a yacht? If you did, the next thing you must purchase now is yacht insurance Cape Coral stands behind. Just like car insurance, yacht insurance gives you peace of mind as you sail and guarantees you never lose a lot of money in case of an accident. Insurance is also a requirement if you will be using your yacht for commercial purposes.
All in all, before you start shopping for yacht insurance Cape Coral endorses, it is imperative that you first speak to a boat surveyor in Cape Coral. The role of the surveyor will be performing a thorough inspection of the vessel and making you aware of any issue the boat might have. The surveyor will also know how much cover you should get for your vessel. In some cases, your insurer will request a survey report. This has to be performed by a surveyor that is approved by your boat insurance provider. The surveyor will be provided with a list of items that have to be included in the survey report.
Now that you understand the importance of working with a surveyor, you will need to learn about the factors that affect the cost of insurance. The underwriter considers several factors to determine the rate to charge for your boat policy. The most common determinants include:
- Value of the boat
- Length of the boat
- Age of the boat
- Condition of the boat
- Type of boat
- Type of engine on the boat
- Moring location
- Previous boating experience
- Claim history of the owner
- The intended area of navigation
- Deductible amount
- Automobile driving record of the owner
- If the owner has taken safe boating courses
How to reduce the cost of insurance
Many factors are looked at when determining the rate (or premium) to charge on a yacht policy. The good news is there are several things you can do to reduce the cost of yacht insurance. The most common ways of doing this include selecting the highest deductible amount. Choose an amount you are comfortable with. Typically, physical damage deductibles begin a 1% of the insured value of the vessel. This can be included up to 5%. A higher deductible amount will reduce the insurance premium. Prior to choosing a deductible amount, know how much you are comfortable paying out of your pocket if a loss occurs.
Most yacht insurance policies include a lay-up period. This is the time the vessel is laid up and out of commission. Typically, during the winter months. During these periods, the underwriters will allow discounts for every month your vessel will be decommissioned. You can reduce the premium by asking for the longest lay-up period possible. You can also reduce the cost of insurance by operating the boat close to your home port and by installing safety devices.
Always speak to your insurance company to find out more about what you can do to keep the cost of insurance low. Your boat surveyor can also help.