How to Insure your Yacht

How to Insure your Yacht?

If you need insurance for your yacht but do not know how to insure your yacht then you may find yourself a bit confused by the different policies you may have been presented with to date.

In this article we will attempt to help explain some of the different aspects of how to insure your yacht. It is important to understand that there are a number of differences that can be found, not only with different companies but also with the policies they offer.

What to Look For

Because each person has different needs when it comes to yacht insurance it is essential to be fully aware of what you are being offered when you are looking into an insurance policy for your yacht.

Oftentimes a cheap policy can end up being much more costly in the long run. This is why you should know up front what kind of protection you are being offered and what the excess is should damage occur before you sign up for any policy.

There are many types of cover and discerning the best to suit your needs is half the battle. Examine what some of the various types of cover entail.

How to Insure your Yacht

Fully Comprehensive

This type of cover is by far the best as it offers protection against theft, fire, vandalism as well as accidental damage.

If you have a very expensive yacht then this is probably the type of cover you are going to want.

It is true that comprehensive cover is more expensive than basic policies that do not cover the above mentioned but when you think about it, it is foolish to save money on yacht insurance premiums only to fall into the hole as a result of an accident or other unfortunate circumstance.

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Insurance for Racing Risk

There are some yacht insurance policies that will include cover for sailing yachts. However, some of them could possibly add an extra fee for this type of cover. If you are uncertain what a policy that is being offered covers in this regard then be sure to ask questions before purchasing a policy. Typically this type of cover is measured by the value of the yachts spars, sails and mast. It is vital to be sure the proper value is placed on these items as too low of an estimate would mean you would not be covered adequately and too high would of course raise your premiums.


Having third party liability is a wise choice. If you do not have this type of cover then you could end up paying for another person’s damage, should an accident involving another vessel occur. Many people are often very lax about liability and the amount they take out when purchasing cover. This is a major mistake and you never want to find yourself in the undesirable position of financial ruin depending on how expensive the boat you are involved in an accident with. Ideally you want about £2,000,000 pounds in liability for third parties.

The ultimate goal when you are purchasing insurance cover for your yacht is to be sure that all possible events are covered in the policy. The cost of your premium is going to depend on many things. The first thing will be the value of your yacht. The more expensive the yacht is the more money you will pay for cover. However, not paying for cover will always wind up being a very costly matter and so the saying, “better to be safe than sorry” definitely applies here.

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