Boats that are over 26 feet in length generally fall in the category of yachts. Large sailboats and cruisers are also considered yachts. It is advisable to insure yachts as they are expensive luxury items and like other boats are susceptible to theft, fire, accidents, etc.
Factors such as the value, age, length, areas where the yacht sails, type of engines, etc determine the premiums. A provision of safety devices, prolonged lay-up periods, taking a boat safety course are some of the means of bringing down the premium amounts.
Yacht insurance covers property damage and liability, these are termed hull coverage and property and indemnity coverage, respectively. The entire yacht and equipment is insured under hull coverage and the insurance company pays for damage caused due to natural calamities, theft, vandalism, etc.
Indemnity coverage helps if a yacht owner is found to have caused damage to property or injury to a non-family member. It is available in increments of $ 100,000 at limits that exceed $ 1 million.
A hurricane protection endorsement bears the charges of towing the yacht out of the water if a hurricane warning is sounded and also pays for hauling the yacht back after the hurricane has subsided. Yacht insurances also cover watercraft such as trailers attached to the yacht and pays for damage to these watercraft.
Yacht insurances are often accompanied by warranties such as a navigational warranty that limits yacht activity within a certain area; under a lay-up warranty a yacht is required to remain out of operation during certain periods in the year.
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