Yacht policies are specialized programs established to offer broader marine coverage for the more serious user. Both types have advantages and disadvantages. This figure is determined by the insurance company and is based upon depreciation and current market value. This amount is often a point of disagreement between the owner and the insurance company. A deductible amount must be paid by the policyholder as specified in the policy.
Premium payments are usually less than a yacht policy and so is the level of coverage.
Premiums can be paid quarterly, twice per year or annually depending on the insurance company that underwrites the policy. A yacht policy covers many of the perils that a cruising vessel is exposed to including legal requirements imposed by the Federal government. This unique type of insurance policy is specifically designed for rigorous marine exposure and contains similar standards of coverage and similar exclusions when comparing one policy with another. Yacht policies are usually applicable to vessels longer than 26 feet. Additional sub-sections cover medical payment, personal items, towing and uninsured boaters.