What to look out for in Yacht Insurance - Our Top 5

1.       The best cover by far will be a yacht insurance policy that insures all risks and provides cover for all losses, except those which are specifically indicated in the documents as being excluded. Exclusions typically include gradual deterioration, wear and tear, dents, scratches, damage by animals, design defects, manufacturer’s defects and the effects of ice.

2.       A yacht needs to be insured for however much it will cost you to replace it with like quality and kind. This is known as agreed or stated value coverage and in the unfortunate event of an incident which leads to total loss; the insurer will pay the policy holder the full value of the yacht.

3.       Steer clear of insurance which provide actual cash value or ACV cover as these policies will, in the same circumstances only pay out the value of the yacht less depreciation and this could cause you to have a significant shortfall of funds when you are trying to replace your yacht.

4.       Most yacht insurance policies will provide cover that allows anybody to operate your yacht as long as they have your permission to do so. However, it is important to familiarise yourself with the individual policy that you purchase as there are exceptions to this rule.

5.       One drawback with yacht insurance is that very often yachts are only used in the summer months but insurance providers require that the vessel is insured all year round. If this situation applies to you, it is best discussed with your provider to see if they offer a discount for the months that your yacht is out of the water. If they are unable to provide this, it may be worth consulting a specialist broker who can point you in the direction of an insurer who does.

The benefits of a reputable insurer should not be underestimated, the advice they give and experience they offer can benefit yacht insurance policy holders immensely. For more information & advice, go to www.QuintessentiallyCovered.com.