With yachts being about the oldest form of transport still being used, it is not surprising when you realise that boat insurance has been available in varying forms for thousands of years. A boat, just like all vehicles is liable for an insurance plan, under the Maritime Insurance Act. Policies like this, and many other sorts, come with an excess designed to stop people claiming on it for small amounts and so it is normally much higher than it would be for a car say. Overall, the only difference between auto insurance plan and that for a boat is the sum it is covering.
As soon as you become a boat owner in the US, most states will need you to have a boat insurance plan in force. Strangely, in the eyes of the marine Industry, a houseboat is in the same class as pleasure boats like sailboats, jet boats and cabin cruises. Nonetheless, a speedboat is in a entirely different category to say a sport fishing vessel owing to the nature of its actions and a higher insurance premium is likely.
Almost all boat insurance policies will cover the cost of replacing the boat, engine and the yacht trailer but Actual Cash Value yacht insurance plans only pay for replacement less any vessel wear and tear from the point of loss. Usually when a yacht has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. It is possible to take out Optional Insurance which will include additional extras such as emergency services to the boat, cover for reasonable repairs, removal, the motor and trailer. Partial damage repairs on the other hand are calculated by working out the full charge to restore the yacht minus deductibles.
To secure the value of the yacht should it happen to be an insurance write off then an Agreed Value boat insurance plan can be taken out where the boat owner and insurer come to an agreement about how much the boat is worth and compensate to this value. Agreed amount value plans also replace old objects with new ones, exclusive of any assumption for wear and tear. With most Agreed value plans, the boat insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.
The two chief aspects of yacht insurance are legal obligation, or security and insurance or property loss. Liability insurance is there to cover against claims by another individual that the insured vessel caused damage or injury to a third party. It is just as important to find a yacht insurance agent that looks after his clients by finding the best policies and obtaining the best settlements should they need them. Equally important when searching for a insurance policy is to have one with good legal backup should it be necessary as a liability claim that is covered under the boat insurance plan be brought against you.
