Question 1

What does yacht insurance typically cover?

Accepted Answer

A standard yacht policy covers hull damage (collision, grounding, storm, fire), liability (injury to third parties, damage to other vessels or property), salvage and wreck removal, personal effects on board, and trailer coverage if applicable. Charter yachts need additional commercial liability coverage. Navigation limits are standard — most policies restrict to coastal waters within a defined geographic area. Named-storm coverage, racing coverage and Caribbean hurricane-season coverage are typically optional add-ons that carry additional premium.

Question 2

How much does yacht insurance cost?

Accepted Answer

Annual premiums typically run 1-3% of the yacht's insured value. A yacht valued at $500,000 costs $5,000-$15,000 per year to insure. Factors affecting premium include the yacht's age, construction material, navigation area, owner experience, claims history and whether the yacht is used for charter. Superyachts over 24 meters typically insure at 0.75-2% of hull value. Deductibles range from 1-2% of hull value for named storms. Using a specialized yacht insurance broker — not a general insurance agent — typically results in better coverage and lower premiums.

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