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Boat insurance basics
Do I need insurance for my boat?
Compiled by FirstBoat.com Staff writers
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Yacht insurance
Sport-fishing boats, larger sailboats and cruisers fall into the category of yachts if they are at least a certain length, typically 25 or 26 feet. Much like boat insurance, yacht insurance offers two main types of coverage: property damage and liability. However, with yacht insurance, they're called hull coverage and property and indemnity coverage.
Hull coverage pays to repair your yacht if fire, theft, windstorm, lightning or vandalism damages it. Basically, it covers the entire yacht, including sails, furniture, outboard motors and machinery -- anything used to operate or maintain the yacht. Some dinghies and trailers are covered under separate policy endorsements.
Protection and indemnity coverage pays if you're found liable for damage to property or injury to someone other than yourself or a family member. As with boat liability insurance, it's usually offered in $100,000 increments, but is also available at limits of more than $1 million.
Yacht owners can also buy what's known as a hurricane protection endorsement. That pays to haul your yacht out of the water if a hurricane watch or warning is issued. It also pays to put the ship back in after the hurricane has passed. The coverage would also pay the costs of hiring a professional to get your yacht to a safe harbor because of an impending hurricane.
One big difference between yacht and boat insurance is that yacht insurance often comes with several "warranties."
A navigational warranty restricts the operation of your yacht to a specific area. That means that your coverage only applies as long as you use the yacht in that region, which could be as large as the entire East Coast or West Coast, or as small as Chesapeake Bay. If you plan to take your yacht outside your navigational area, most companies offer what's known as a trip endorsement to expand your coverage.
Personal watercraft insurance
Getting insurance coverage for your jet ski can be more difficult, as there are higher risks involved with jet skis. According to statistics from AAA Michigan, 45 percent of all the boating accidents reported in 1995 involved personal watercraft. Operator inexperience was blamed in 95 percent of the personal watercraft accidents.
If you own a personal watercraft, you'd be wise to purchase insurance coverage that includes bodily injury, property damage, liability and theft. The liability limits of these policies is typically $15,000, but can be increased to suit your needs.
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