Insurance for your water craft is a critical item to have, but you may notice that insurance brokers offer both boat and yacht insurance. Is there a difference? Yes. The most significant difference is the length of the vessel. A boat is defined as being 26’ or shorter, and a yacht is defined as 27’ or longer. The size determines the range of navigation and the distance away from shore that the vessel can typically travel. Boats stay within inland waters, and yachts venture into larger bodies of water and travel longer distances.
Insurance coverage for both boats and yachts typically include physical damage, personal property and liability. Yacht coverage goes beyond boat insurance in several ways such as coverage for natural disasters, hurricanes, tropical storms and others. Yacht insurance also includes wreckage removal due to their size.
A yacht has a wider, broader navigational range, therefore the insurance may be much more detailed and inclusive than a standard boat policy. A boat insurance policy may offer certain coverage as optional, such as towing, additional personal property coverage, and fuel spill coverage; however, a yacht insurance policy can automatically include those as standard. Custom coverage may offer additional hurricane and tropical storm coverage, especially if you plan to sail to a region prone to those weather events during the active seasons. Moreover, standard boat policies extend to only 75 miles out from the U.S., Mexican and Canadian coastlines, and if a boat ventures out further than that, it may not be covered at that distance. A yacht policy should extend beyond the 75 mile marker.
Other details to be cognizant of include the three loss settlement options: agreed value, replacement cost, and market value. Determining which type of coverage to carry can most likely depend on your vessel. If the yacht has many special upgrades, an agreed value policy may be best as the policy should state the value in advance and cover those upgrades which can be difficult to replace. An owner of a new yacht may want to consider agreed value as well, since the policy may cover any depreciation. Market value and replacement cost is more appropriate for older yachts that have already incurred most of their depreciation, or for yachts with fewer frills that are easier to replace. Types of coverage include personal effects and fishing gear, emergency assistance, towing, and search and rescue, travel loss reimbursement, under- or uninsured watercraft, and Longshore and Harbor Workers Compensation coverage.
Boating remains a thrilling, exhilarating activity. You have the wind in your hair, you smell the salt of the ocean, and hear the snap of the mainsail. It’s easy to forget about the insurance or to know the difference between boat and yacht insurance. Yet, it remains one of the best methods to protect your investment and give you peace of mind. You can relax and enjoy all the water has to offer.
We’ll help you get back to smooth sailing. Call Voyager Insurance Services at (800) 342-4444 for more information on Dallas yacht insurance.