As a boat owner you take pride in your vessel, and try to deliver memorable voyages to friends and family happily embarking on a trip on the water. But you also need to protect that investment, along with providing security to your passengers. Having California yacht insurance will give you the peace of mind that comes with knowing that, if an incident occurs and damages or injuries are sustained, you’ve taken the steps to ensure that the situation will be remedied to the best of your capabilities.
Even at a relatively low price, the right policy will provide you with essential liability coverage to protect your assets. If you opt for agreed cash value, this coverage lowers your premium by paying you the current market price for your boat in the event of a total loss. This is recommended for smaller boats, personal watercraft and boats without a lien holder.
Get an agent involved
An agent or broker can help you by reviewing your coverage needs and pointing out any policy issues that you may not be aware of. If you’re looking to buy, an agent should educate you about the realities of operating a boat prior to your making the purchase. Navigating a yacht is very different from say, an automobile, and there are hazards in the water that you can’t always see, for example, the tides, the current, and rocks or sandbars.
Some people believe that their personal watercraft is covered by their homeowner’s policy. While the watercraft’s engine may fit the description of an inboard engine, it has more than 50 horsepower so there actually isn’t any liability coverage on their home policy. Another concern you may have is whether or not the insurance covers others while using your yacht. Borrowing the vessel is covered under a boat policy if it’s used with your permission, and the policy is written to provide for this situation.
The definition of named insured or an insured person on your California yacht insurance policy usually covers the boat owner, anyone using a boat with the owner’s permission or a paid captain and crew, provided that crew coverage is added.