Your yacht is your prized possession. If anything happens to it, regardless of fault, you want to be sure that you’ll be able to repair or replace it without searching draining your personal account. Here are two key points you should keep in mind when you’re looking for yacht insurance.
What is Covered?
Most policies offer the same coverages with varying levels. Be sure to choose an experienced California yacht insurance provider who can help you get the right amount of coverage. The following cases are covered by most policies:
- Damage done to someone else’s property
- Bodily injury to another person
- Liability for guest on your yacht
Actual Cash Versus Agreed Amount Cash Value
There are two types of insurance policies to choose from – actual cash value and agreed amount value. With an actual cash value policy, if you’re in an accident and your yacht is totaled, your policy will cover the replacement costs minus any depreciation at the time of the accident. With actual cash value, you and your insurer will agree to an amount to be paid in case of an accident. In this case, your policy will only cover the cost of repair up to that agreed-upon amount.
While there are similarities with car insurance, there are key differences in yacht insurance that you need to take into consideration before purchasing a policy. Working with a qualified California yacht insurance provider will help you get the right coverage to protect your investment.