During all those board meetings and business presentations, does your mind constantly go back to how relaxing your weekend is going to be? Yachts are pleasure toys which help you explore a new world of peace and tranquility- out in the calming blue waves of the sea. The wind breezing through your hair, the hull of the birds overhead and the snap of a fishing line are signs of bliss. But are you scared of going out on your ventures because of the fear of an untoward event. The seas can be as dangerous as they are soothing. Considering the fact that a yacht involves big bucks, don’t let your investment drown so easily. Protect your financial assets from meeting a mishap.
- One-size-fits-all insurance policy
No. Yacht insurances do not follow a “one-size-fits-all” rule and are typically covered under “fleet” policy with preferential rates that differ from company to company. You see, covering a million-dollar yacht is almost like getting a small home insured.
- Yacht policy insures the boat at all times
Sadly not true. If the said insured property is being transported on land, it comes under the automobile policy. Yacht policy will not pay for bodily harm, damage to property or loss of life when on land. So, it is important to get your yacht and boats insured
Things to Keep in Mind while Insuring a Yatch
- Actual Cash Value or the Agreed Value Policy
With agreed value, the insurer and the insured agree on a set value of the yacht which is given to the insured in the case of any unfortunate event. But yachts are like cars in the respect that they get depreciated with use and thus enter the Actual Cash value or the market value which kicks in post depreciation deductions.
- Be specific: Identify your boat and its features before buying the insurance.
- Include all the safety features in the insurance, as it maintains the yachts’ market value in the long run and insurance companies also easily pay for them.
- Extend your lay-up period: Be careful to mention the lay-off period for your yachts. This is the period of months when you are not going to be using the yacht and can choose to not give premiums for that period.
- Insurance companies give benevolent premium offers to those yacht owners who do not venture out in the hurricane season. So plan your trips according to the season.
Getting the right insurance is a tricky business, especially with the level of information asymmetry existing. So visit marine agency to get a yacht insurance custom-made for your travels and lifestyle.