Definitions to Know When Getting Quotes for Yacht Insurance

Shopping for insurance takes time you don’t have enough of and certainly don’t want to waste. And as anyone that has shopped for insurance knows, quotes from various agents are very different and include differing coverage. Here are a couple of things to look for when asking about yacht insurance quotes.

Catastrophic Coverage

Also known as Consequential Damage Protection Coverage, this insurance covers damage to your yacht of a catastrophic nature; and therefore, beyond your control. Insurance varies widely, so be sure to ask for a list of disasters that are covered. Here are a few examples to consider:

  • Sinking
  • Collision
  • Stranding
  • Fire
  • Explosion
  • Corrosion

Defense Coverage

Many insurance policies limit liability coverage to the amount listed. This includes defense costs. Other insurance providers often list defense costs as an addition to the liability amount declared in order to help their insured cover costs in times of extreme stress.

Contractual Liability Coverage

When storing your yacht at a marina, boatyard, or in a storage yard, you may be asked to sign a document with a waiver clause protecting that company from any action on your part against them for damages done to your yacht while under their protection. In other words, it limits the marina’s liability.

Exceptional Coverage

Knowing what questions to ask about specific coverage when you get yacht insurance quotes can save you both time and money. By asking detailed questions, you may find yourself with exceptional coverage at discount rates.