Finding the best insurance policy and agent for your trawler or motor yacht can be complicated and confusing. Marine insurance is highly specialized and is much different that your auto or homeowners insurance. By the way, marine insurance is the oldest form of insurance and governed by its own set of Maritime Laws.
Hull coverage includes the hull and structural items aboard on the trawler or motor yacht and equipment permanently attached to the yacht and used in the regular operation of the boat. Some policies will give you a lower deductible for nautical electronics which can be a nice option given the cost to replace these items and the frequency of loss or damage to the electronics by storm and/or theft.
Often you can buy hull insurance at Agreed Value, meaning that you and your insurance provider agree on the value of your yacht. if your boat is a complete loss you will be covered for that amount on the Declaration Page of the Policy.
There is also, Actual Cash Value (ACV). This means that if your yacht was totaled in a loss you would be tendered a depreciated settlement the going market value of your particular trawler or motor yacht. Many people are not fully conscious of what they are purchasing. Most losses are partial losses and you could expect a depreciated settlement on that as well.
While Actual Cash Value policies will be less expensive, beware, you may also learn that if you have a loss you are getting far less than you bargained for.
Be sure to talk to your insurance agent about how your loss would be established for both a complete loss and a partial loss and what would be subject to depreciation. Typically, engines are subject to depreciation. Usually wind-storm canvas damage is not covered by a policy.
You will also want to make sure that the policy you buy covers salvage, environmental cleanup in the event of fuel spills, and shipwreck removal. Oftentimes, the salvage of a destroyed yacht will exceed the policy limits if not for supplemental coverages included in the policies offered by the best companies.
Most recreational maritime policies will have a seafaring territory. It is usually a guarantee of the policy and consequently extremely important that it is correct on your policy. A warranty is strong language in an insurance policy and if you venture outside those limits noted on the declaration's page, you will not have any coverage is you were to sustain a loss while cruising. Make sure you speak with your agent about this matter and make sure you have the coverage you need; keeping in mind this is a crucial factor in determining the premium.
Lay-ups are something to review with your agent. If you are in hurricane prone areas, a layup will often be covered by the policy to protect the yacht from damage by an active storm. You may be entitled to some premium reduction if the trawler or motor yacht is hauled out of water during the winter months too. Some other things that could result in a discount are boating classes,a Coast Guard Captain License, and equipment on your trawler or motor yacht such as anti-theft devices.
Additionally, many boat policies will have Longshore and Harbor Workers Compensation which would cover you should you become lawfully obligated under the Longshore and Harbor Workers Compensation Act for any physical injury developing out of the ownership, maintenance or use of a yacht. Jones Act coverage would also be required if you hire crew or have a full-time paid Captain.
In addition, look at the Exclusion segment of the policy so you understand what is not covered.
Since maritime insurance is a different animal, make sure to work with an Agent that understands trawler or motor yachting and knows the marine insurance business, so they will know how to guide you.
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