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.