Yacht Insurance Options for Owners
Owning a yacht is a real pleasure, but because yachts are such an expensive item to own, you need to purchase Newport beach boat insurance to protect your investment. It would be ashamed to not properly insure something as special as a yacht, but you also don’t want to buy too much coverage since the increase in premiums won’t increase the amount received in the event of a loss.
One solution is to hire an independent appraiser if the value of the vessel is questionable. Plus, the true value could be one thing to the owner and something completely different to your insurer. Before purchasing a new insurance policy make sure to be in agreement on the amount that the insurer is willing to pay out in the event of a total loss. You might want to ask other yacht owners about their claim history and receipt of payments as well as check with people who work with yachts, such as repair shops and mechanics.
Always have the exact coverage needed
Always go over the terms of any policy. One potential issue may be the valuation clause. In the event of a complete loss, many boat owners are unaware that insurers will subtract the depreciation of the boat based on its age and condition. For example, they may issue a check for the value of the boat based on the current market value listed in the BUC Book (a marine version of the Blue Book used for estimating the value of certain cars).
If your yacht is a total loss, the insurance company is going to pay sufficiently less than the original purchase price, due to the age of the vessel now. Youll need to adjust the amount you pay on your policy in order to reflect this since your boat is going to slowly depreciate over time. The insurer often uses both, the condition and age of the vessel, to determine the current value and that’s the amount they will pay out, less your policy deductible.
Re-evaluate the marine manufacturer’s insurance policy every year and consider purchasing an agreed-value policy from a Newport beach boat insurance provider. With this type of policy, both the owner and the insurance company agree on the value of the boat and what it would cost to replace in the case of a total loss.