Insurance in Focus

Posted: September 1, 2013  |  Tag: Miscellaneous

By: John Temple

My yacht insurance is up for renewal. What is most important about your yacht insurance policy and choosing a vendor?
Insurance is not important unless it is required by the marina where you dock, or you have a loss. Then, all of a sudden, it becomes very important. Actually, insurance is always important, but we don’t think about it until it’s too late, so the question of what to look at is a good one. It’s a topic too big to cover here fully, but there are three details to look at: the cost, what is covered and what is excluded.

We’ll cover cost first, but I would suggest that it is least important. If you have a loss, what you paid becomes irrelevant; it is all about what parts of your loss will be covered and the service you get from both the insurance company and your agent.

Most insurance policies are very similar in regard to what is covered; it is when you get to the exclusions that the wheat separates from the chaff. As you read through the exclusions on a policy, make sure they aren’t so extensive that they offset any savings or negate anything you read at first.

When it comes to what’s important, it’s all about consequential damage. Here is an example: On my dock a few years ago, a boat sank — not all the way, but it suffered a lot of damage. The cause was a muskrat eating through a hose. The hose was covered but not the consequential damage. Ouch. Many insurance companies cover the damage from an animal, but many don’t cover the consequential damage. This is big. Find a company that covers consequential damage. Ask you agent about that specifically, if you find it important to have the coverage. You have a voice in the process; make it heard.

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