Yacht Insurance Exclusions

Repairing a yacht after it receives damage can be expensive, so it is important to know any yacht insurance exclusions on your policy. Perhaps knowing that a certain repair will come out of your own pocket may make you less likely to engage in activity which may result in this type of damage.

Insurance exclusions are instances which are not covered by your policy. Although there are several types of damages which are not normally covered with yachts, oftentimes the owner can add additional coverage at a higher cost. Since yachts are invariably costly to purchase and maintain it is important to have adequate insurance coverage to make sure that the vessel remains serviceable.

Although yacht insurance exclusions vary from one insurance carrier to another and also from one policy to another, there are some exclusions which are typically found on most yacht insurance policies. These include:

• Damages resulting from illegal activity. If, for example, an owner uses his or her yacht to carry illegal drugs and incurs damage during the encounter, the insurance policy will not cover the costs to repair the damage. This does not apply to instances when the yacht is used for illegal activity by someone who does not have rightful ownership to the yacht, such as if it is stolen and used for illegal purposes.
• Intentional damage by the owner. Imagine an owner who decides it would be great fun to see what would happen to the yacht if it were to slam into a pier. The damage resulting from this collision would not be covered by the insurance company because the collision was not an accident and was a fully intentional act. As with the exclusion for illegal activity, this does not pertain to intentional acts by people other than the owners.
• Damage as a result of war. This does not mean that the yacht is necessarily engaged in battle as a commissioned ship of a navy. Instead, some insurance companies include war exclusions in their policies because they do not want to be financially responsible if a large-scale bombing wipes out an entire marina of yachts and other ships.
• Damage from a rightful seizure. If the yacht is damaged while being seized by the Coast Guard or another legal authority, insurance companies will usually not pay for the repairs. This may also apply to legal repossessions by lending companies if the yacht owner is in default on the yacht loan.
• Normal wear and tear. As with any other vehicle, yachts experience normal signs of wear and tear with even the most meticulous owners. These damages are usually not covered by insurance companies They can, however, in some cases be handled by a warranty company.
• Manufacturer defects. If a yacht manufacturer makes a mistake in the creation of the yacht and it results in damage, it is the manufacturer who must be responsible for the repairs instead of the insurance company.
• Location exclusions. Not every yacht insurance company can cover every location. Some insurance companies limit the areas in which the coverage is valid, and if damage occurs while the yacht is in unprotected waters then the insurance company is not liable for the cost of the repairs.
• Damage incurred during a chartered sail. Some yacht owners rent out their vessels to groups or individuals for chartered trips and tours. When the yacht is used for profit, it changes the scope of the insurance policy and makes regular policies inadequate. Damages incurred during chartered excursions may not be covered by the insurance company.

Talk to your yacht insurance representative to see how much it would cost to enhance your current policy to cover certain instances which are excluded from coverage. There are some instances of damage – such as through illegal activities on the part of the owner – which you will have an extremely hard time finding a reputable company to cover, regardless of how much extra money you are willing to pay in premiums. If you are instead looking to simply have extra coverage for instances of chartered trips or international travel then you shouldn't encounter any major problems with finding an appropriate insurer.

• Roadside Assistance Plans
• Full Coverage Dental Insurance
• Low Cost Motorcycle Insurance
• Car Accident Reports

• Free Medical Release Forms
• Sample Medical Release Form
• Guardian Dental Insurance
• Insurance Sample Cancellation Letter
• Sears Appliance Extended Warranty

• Umbrella Insurance Policies
• Boat Dealer Insurance
• Category:Misc. Insurance
• Yacht Insurance Availability
• Umbrella Insurance: An Interview with Author and Insurance Expert Jack Hungelmann