BOAT & YACHT INSURANCE:

BOAT & YACHT INSURANCE:

There are many differences between "boats" and "yachts". Yachts are classified as vessels 27 Feet or more in lengths, while boats are 26 feet or less.

 

No matter what the type of vessel you have (boat or yacht), when it comes to the type of policy, all boat owners and yacht owners seek out "Agreed Value Insurance Policies". An Agreed Value Insurance Policy covers all damages, except for sails, outboard motors, canvas covers, cushions or other specified items. 

Agreed Value Insurance Policies do not reflect depreciation or market value, which means you will get a greater settlement in the event of a claim. Other policies such as "Actual Cash Value" may be cheaper, but they also factor in depreciation and market value and will subtract that from you payout. 

Also, when it comes to navigation limit, boat and yacht insurance policies can vary due to different exposures. For example, a boat policy typically includes unlimited overland transportation on a trailer, while a larger yacht policy would restrict overland trailering to only several hundred miles. 

Deductible amounts can also differ. A yacht policy can offer deductibles of up to three (3) percent for any hull damage. However, deductibles for a total loss, marine electronics loss or a windstorm loss can very depending on your particular policy. By contract, a boat policy offers a flat deductible, typically of $250, $500 or $1,000. 

Because yachts inherently incur more risk due to their size and navigation, the liability feature of yacht insurance provides broad coverage designed to shield you from the effects of the maritime law. Your coverage is much broader than with a typical watercraft liability policy, and offers protection to permissive users, captain and crew liabilities, along with the Jones Act, a Federal Law that allows a seaman who gets injured on the job to bring a suit for damages against his or her employer.

Also, yacht insurance addresses salvage to a damaged yacht, legal liability to remove a sunken wreck and uninsured boater coverages. In a typical boat policy, only general liability protection is included. For example, if your boat sinks in the Great Lakes or any of its tributaries, the U.S. Coast Guard says it must be raised. There will be salvage costs, fuel clean-up - and you'll have to pay the bill regardless of your coverage.

While most yacht policies provide salvage coverage, they do so in different ways. Some choose to limit the dollar coverage to a stated amount or percentage of the hull amount.

Another very important part of the salvage issue is wreck removal. Some companies include wreck removal under their hull coverage, which then limits its value. A true yacht policy will include it under the protection and indemnity limit, which will provide much higher limits and additional coverage.

Another difference is that in yacht policies, your legal defense is in addition to protection and indemnity limits, while boat policies offer legal defense within the limit of liability.

Yacht policies have warranties, including the seaworthiness, navigation limits territories and navigation lay-up limits. While some boat policies do not require warranties, others may incorporate them.

Many boaters consider adding their vessels to their homeowner's insurance in an attempt to reduce their costs. Although the cost is substantially less when you add a boat to a homeowner's policy, but you don't get near the coverage. In this case, the old adage still holds true - you get what you pay for. The bottom line is not the amount of your policy premium, but how much you will collect at the time of loss.

Why all of our Insurance Applications are reviewed by our Firm prior to issuing a CUSTOM INUSURANCE QUOTE to you! 

  • Misunderstanding: The first reason buying insurance online can be dangerous is because the "online quotes" and the "policies" can be misunderstood and there are few chances to have those misunderstandings explained to you be an industry expert prior to purchasing the insurance policy. 

  • Custom Quotes and Policies are more difficult to set up: Every individual, family, and business is different, and the insurance needs are always different. An online quote and policy purchase is not necessarily able to create a custom policy around those needs of your family or business. This means you will most likely get a general policy that is good for the average person, but not necessarily what is best for you. Odds are, with a Custom Quote, you can "get more for less."

  • Not assigned an individual agent to handle coverage: After buying insurance online you may feel covered and protected. Having one client assigned to you for every potential claim you have to file is a big advantage that you may be missing out on when buying insurance online. An individual who knows your entire history from purchase to claim will be able to fight for you better than someone who was randomly assigned for that one claim after buying online.

  • Adjusting your policy: As business and families grow and change, your insurance policy should change with it to make sure everything, and more importantly, everyone is covered. If buying insurance online, you will rarely speak to the same agent twice and will lose that initial time savings by needing to explain the changing circumstances around your family or business' insurance needs.  

  • Lack location specific assistance: Online quotes and purchasing sites give you the ability to see a standard policy for your area. However, what it doesn't take into account is the individual needs for your exact location and your family and business needs based on that information. 

STEVE MUEHLER:

1055 West 7th Street

Los Angeles, California 90017

Phone: (310) 779-7226

Email: Steve@SteveMuehler.com

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