Some good advice here and some bad advice. If you have a boat that you keep in the water
you should buy a yacht policy from a good marine insurance company. I'm in the insurance business (personal and commercial
lines, not yacht-specific). Most people think all coverages are the same. They are not.
I just did a presentation for my yacht club on marine insurance and got policies from six different companies. They were all different. If you are too lazy to talk with a good insurance agent and thoroughly read your policy don't bother reading the rest of this post.
Here is what you should look for (at a minimum):
1. What kind of towing/vessel assistance is covered? Many companies place a fairly low dollar limit on what they will pay for towing or assistance.
2. Make sure the agreed value of the policy is adequate for replacing your boat and possessions. All of the good companies will require a survey and that will establish the value of your boat.
3. How do they cover mechanical problems that result in other damage? I have two friends that were insured with Premier, and each had a defective part in a diesel engine
fail resulting in complete damage to the engine
. Premier would not pay for repairing/replacing the first guy's engine until he hired an attorney and started a lawsuit. My second friend is still fighting them a year after his engine failed. Most yacht policies will not pay for the original failure but will pay for resulting damages. Example: a fuel
injector fails, spews fuel
into a piston, causing damage to the piston that damages the rest of the engine. Most yacht policies will not pay for the fuel injector but will pay to replace or rebuild
the rest of the engine. Premier's policy language requires that an accident
take place (like you hit a sandbar or ran over an anchor
4. Protect your future and get the highest liability limits you can. If you are smart you will also have a Personal Liability Umbrella.
5. How much environmental damage coverage does your policy provide? A good yacht policy will provide somewhere north of $700,000. Your Personal Liability Umbrella will not cover environmental damages.
Did I mention you need to read your policy? :-)