Question 1

What's the difference between agreed value and actual cash value?

Accepted Answer

Agreed value (also called stated value) means the insurer pays the full insured amount listed on the policy in a total loss, regardless of depreciation or market value at the time of loss. Actual cash value (ACV) deducts depreciation, often paying 30%–60% of the original insured amount on older vessels. For luxury yachts, agreed value is essential — the difference can be hundreds of thousands of dollars on a single total-loss claim. Annual appraisal updates keep the agreed value aligned with true market value.

Question 2

Does yacht insurance cover hurricane damage?

Accepted Answer

Yes, but with conditions. Most policies cover hurricane and named-storm damage but apply a separate, higher deductible (typically 5%–10% of insured value) for storm-related claims. Many Florida yacht policies also require compliance with a hurricane plan — documented haul-out arrangements, mooring procedures, or removal from named-storm zones. Policies often reimburse hurricane preparation costs (haul-out fees, storage, removal of canvas and sails) up to a sublimit. Failing to follow the hurricane plan can result in reduced or denied coverage on storm claims.

Question 3

What's covered if my yacht is damaged at the marina?

Accepted Answer

Hull and machinery coverage responds for direct physical damage to your vessel from any covered peril, whether the vessel is underway, at the dock, or hauled out. If the marina caused the damage (e.g., negligent dockage), your policy can pursue subrogation against the marina's marina-operators legal liability coverage. If a neighboring vessel caused damage during a storm, that vessel's liability coverage typically responds, with your hull policy as backup. Pollution and wreck removal are typically covered under separate P&I or pollution liability sublimits.

Question 4

Do I need separate liability or is it included with hull coverage?

Accepted Answer

Most yacht policies bundle hull coverage AND liability into a single program. Liability typically protects against third-party bodily injury, property damage, fuel spill, and emergency assistance obligations. For chartered or commercial use of the vessel, P&I (Protection & Indemnity) is a separate, more robust liability framework — required if the yacht earns income through charter operations or carries paying passengers. Pure-pleasure yachts use the bundled liability structure; commercial use changes the architecture entirely.

Question 5

What's worldwide navigation territory?

Accepted Answer

Most U.S. yacht policies limit coverage to U.S. coastal waters and a defined buffer (typically 250 nautical miles offshore plus the Bahamas). Vessels cruising further — the Caribbean, transatlantic, Mediterranean — need expanded navigation territory endorsements specifying the geographic scope. Worldwide cruising policies are available from specialty marine markets at higher premium. Confirm your itinerary with the carrier BEFORE crossing into excluded waters; coverage gaps offshore are difficult and expensive to fix mid-cruise.

Question 6

How is yacht insurance premium calculated?

Accepted Answer

Premium is driven by hull value, vessel age, type and use (cruising, fishing, racing), navigation territory, mooring location, owner's boating experience and claims history, and selected deductible structure. South Florida yacht insurance typically runs 1.0%–2.5% of hull value annually for well-maintained vessels with experienced owners; older vessels, low-experience owners, and high-claim history can run 3%+ or face declined-and-replaced underwriting. Multi-vessel and umbrella stacking can bring effective rates down significantly.

Question 7

Is my tender or jet ski covered?

Accepted Answer

Most yacht policies include personal watercraft and tender coverage as a sublimit (typically $25K–$100K), with separate liability extending to operations of the tender. Larger or more valuable tenders should be specifically scheduled with their own agreed value to avoid coverage gaps. Jet skis carried aboard for guest use can be added by endorsement; jet skis used independently from the yacht typically need their own personal watercraft policy. We coordinate vessel and tender coverage so nothing falls between policies.

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