Published on : 17 August 20203 min reading time
Today, yachts are considered a symbol of social success and wealth. Those who own one or more models are the billionaires. Yacht insurance is essential for this type of vehicle. They are subject to the same navigational risks as semi-rigid or small sailing boats.
A few words about the indispensability of yacht insurance
Insurance for pleasure boats is not mandatory. Professional yacht charter companies must be covered by at least a third party liability insurance. Be aware that the compulsory traffic insurances that are imposed for cars do not correspond to the same requirements as those for yachts. However, it is advisable for charterers or yacht owners to take out a yacht insurance policy, because the slightest loss or accident can lead to repairs that can cost up to tens of thousands of euros. This can be even more in the event of a total loss.
The cost of insurance for a yacht is much higher than for a conventional motorboat. In order to find the best coverage quality or price ratio, it is essential to put several quotes in competition with each other. Calling on a broker specialising in boat insurance is essential in order to access competitive rates.
The types of contracts offered in a yacht insurance
There are two types of insurance contracts for a yacht. All-risk yacht insurance or comprehensive insurance contains, in addition to liability insurance, a wide range of coverages to cover the boat itself, the equipment and objects on board, passengers, etc. Third party boat insurance, which includes liability cover for damage that the yachtsman may cause to others and also additional cover to benefit from legal protection and defence recourse. The other guarantees offered by yacht insurance are cyclone risk, strike risk, war and terrorism, vehicles on board, cash, electronic equipment, etc.
How to choose the right insurance for a yacht?
The choice of insurance for a yacht should be based on several criteria such as the optional cover and its influence on the total price of the annual premium, the basic cover in the multi-risk package, the assistance cover for the boat and its occupants. You also need to know the equipment covered by the insurance, the period of cover, the costs covered in the event of an incident, the compensation ceilings and the terms and conditions that apply in the event of a claim, the coverage of specific risks, etc.