What Does Yacht Insurance Cover?

You may wonder how yacht insurance is different from regular boat insurance. Some people might accidentally think there is no difference. The fact is, yacht insurance is usually different from boat insurance. The definition of a yacht is different from that of a boat. 

Yacht insurance and boat insurance often cover similar risks. But, they also cover different things. Coverage levels may also be different. It is important for any watercraft owner to understand what yacht insurance is, and how it works. 

What is a yacht? 

Yacht insurance generally covers pleasure crafts. A pleasure craft is usually used mostly for personal or sportsman use. The definition of a yacht may also apply to an antique or classic boat. 

Boats that are not yachts may be used for business reasons or commercial reasons. They may not be pleasure crafts. Therefore, there might be differences in coverage between yachts and other boats. 

Talk to your insurance agent when purchasing a watercraft policy. He or she can help you determine if you need yacht insurance or another form of boat insurance. 

What will yacht insurance cover? 

Yacht insurance will likely cover many of the same liabilities that boat insurance covers. There will usually be coverage for personal property damage, collision damage, bodily injury and other property damage. 

Yacht insurance will also likely cover passengers, including the owner. There may also be coverage for theft. 

How much coverage you have will depend on your policy. If you have a more comprehensive policy, you will likely have more coverage. Coverage will also likely apply in more scenarios where you could receive damages. 

The cost of your policy will also vary based on your boat, its uses and your location. Some states have certain required coverage levels, and even require boats to have insurance. 

Regarding weather, yacht insurance can sometimes protect your craft from different types of weather. The key word is sometimes. Storm, flood and hurricane damages are high risks to yachts. In some cases, yacht insurance will cover these natural threats. 

However, many policies do not cover weather damages. A yacht owner may have to buy extra insurance to make sure that a boat has coverage in case of weather damage. 

Yacht owners should always make sure that they invest in proper safety guards and techniques to avoid damages. This will greatly reduce the risk of having to cash in on a yacht insurance policy. 

Are you curious if you need yacht insurance or boat insurance? Explore our coverage options today. If you have questions about what your yacht insurance covers, call us today.