If you are an owner of a yacht, you must be well aware of the ins and outs of yacht insurance. This coverage provides liability protection on these luxury boats. Yacht insurance protects you from bodily injury or property damage liability (including others’ property and your personal property on the boat). Strong coverage can also cover emergency towing and services, as well as coverage for marine environmental damage.
Understanding Yacht Insurance
First and foremost, it is essential to assess the risks to design a program that meets your unique needs. No matter the size of your boat, you will want an insurer that understands that yachts require specialized insurance that is not available in standard policies and can adequately accommodate this elite market.
You and your agent can work together to determine whether it is more appropriate to insure your yacht on an agreed-value or a replacement cost basis. You can opt for an actual cash value or agreed value policy. When determining what best fits your needs, you will want to factor in many details such as vessel size, the number of crew, and the contents on board to determine the proper amount of liability insurance or medical payments limits. The inventory of your furnishings, fine art, and other high-value personal items on board should be considered to ensure they are protected. You won’t want to go far in your yacht without the peace of mind that the best NJ yacht insurance provides.
Components of Yacht Insurance
There are primary components of yacht insurance to consider. Hull insurance is an all-risk direct damage coverage that includes an agreed amount of hull coverage. This means that all parties agree at the time the policy is written on the value of the vessel, and the value will be paid out in a total loss. The other aspect of a yacht policy also includes replacement cost coverage on partial losses. Keep in mind that there is an exception of sails, canvas, batteries, outboards, and sometimes outdrives, which are depreciated. Since the risks for yachts are so unique, you will need coverages that are designed for these specific exposures.
You will also want a program that includes broad navigational limits, bottom inspection and other precautionary tactics, emergency towing and services, as well as coverage for marine environmental damage. Plus, with a plan that allows you to manage your premium, you can choose from a variety of deductible options and maintain your risk tolerance.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.