Policy Options for Boat Enthusiasts

yacht insurance in Newport beach

Boat owners in California have the opportunity to hit the high seas practically all year around due to the mostly pleasant weather. Those in the southern part of the state are the most fortunate, and with so many people utilizing the waters off the coast there exists a higher probability of accidents occurring. Having yacht insurance in Newport beach allows those boat owners the added confidence that, when an incident occurs their policy will help them deal with the matter promptly and efficiently.

There are two basic types of boat insurance on the market; agreed value and actual cash value. How depreciation of your vessel is handled is what sets them apart. An “agreed value” policy covers the boat based on its value when the policy was written. While it may cost you more in up front costs, there is no depreciation for a total loss of the vessel, although some partial losses may be depreciated.

“Actual cash value” policies cost less up front, but you must then factor in depreciation. This simply means that the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss.As time passes and your boat ages, your insurer will probably insist that you take an actual cash value policy since it often provides you with substantial savings.

Separate your boat insurance from your homeowner’s policy

When it comes to insuring your boat, many homeowners policies limit or in many cases dont cover marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage. But there are exceptions. Many homeowners policies include adequate coverage for smaller boats and motors, usually with a horsepower limit of from 25- to 100-horsepower.

Many homeowners insurance riders apply only to use in inland waterways, lakes and rivers and coverage seldom extends outside a coastal inlet or along the beach. If you plan to boat outside the inlet you definitely need to speak to an experienced marine insurer about your Newport beach yacht insurance needs and what your policy limits should be to determine what policy is the right fit for you.