what is yacht insurance 
yacht insurance is an insurance policy that provides indemnity liability coverage for a sailing vessel it includes liability coverage for bodily injury or damage to the property of others and damage to personal property on the vessel depending on the insurance provider this insurance could also include gas delivery towing and assistance if your yacht gets stranded understanding yacht insurancesome companies specialize in providing coverage for antique and classic boats you can choose between an actual cash value or agreed value policy the former is cheaper but factors in depreciation and market value so your payout will be less 12 some policies include discounts based on your boating education safety features and whether you have a hybrid or electric boat some companies also offer a package deal that decreases the rate on a yacht insurance policy if you purchase additional policies such as for your home or car 3boats are defined as vessels under 197 feet long while ships are 197 feet long or longer there is no agreed upon length for a yacht but they are generally considered to be at least 30 feet long a vessel under 27 feet is considered a pleasure boat 4although there isn t a standard definition of what the size of a yacht is we can see that there is a general agreement within a range with that being said this general range falls within class 2 and class 3 of the federal boat classification system 5for its own purposes the national boat owners association marks the dividing line at 27 feet most yacht coverage is broader and more specialized than pleasure boat coverage because larger vessels travel farther and are exposed to greater risks 2yacht insurance is broader and more specialized than pleasure boat coverage due to the fact that a yacht can sail farther and thus runs greater risks a yacht insurance deductible the amount of money you must pay out of your own pocket before your insurance kicks in is usually a percentage of the insured value a 1 deductible for example means that a boat insured for 100 000 would have a 1 000 deductible most lenders allow a maximum deductible of 2 of the insured value 6generally yacht insurance coverage does not include wear and tear gradual deterioration marine life marring denting scratching animal damage osmosis blistering electrolysis manufacturer s defects defects in design and ice and freezing 7two parts of yacht insurancethere are two principal sections of a yacht insurance policy hull insurance is an all risk direct damage coverage that includes an agreed amount of hull coverage that amount is settled on when the policy is written and in the case of a total loss it will be paid out in full 8 in addition there is replacement cost coverage on partial losses though sails canvas batteries outboards and sometimes outdrives are not include and instead are subject to depreciation 9protection and indemnity p i insurance is the broadest of all liability coverages and because maritime law is particular you will need coverages that are designed for those exposures longshore and harbor workers coverage and jones act coverage for the yacht s crew are included and important because your losses in these areas could run into six figures p i will cover any judgements against you and also pays for your defense in admiralty courts 910