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Yacht Insurance Knowledge Base

Find answers to common questions about yacht insurance coverage, policies, and claims.

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What is agreed value coverage in yacht insurance?

Agreed value coverage means the insurance company agrees on the boat's value upfront, ensuring you receive that amount if the boat is declared a total loss.

ValuationCoverage-typesTotal-loss

Published 12 Jan 2026·Read answer →

What is protection and indemnity (P&I) coverage?

P&I coverage protects against third-party liability claims for bodily injury, property damage, and legal costs. It's essential for boats operating in international waters.

LiabilityInternationalLegal-protection

Published 12 Jan 2026·Read answer →

Can I receive payment for both a claim and depreciation?

No. Insurance pays the actual cash value (depreciated) or agreed value. You don't receive both the loss and depreciation.

ValuationSettlementLegal

Published 12 Jan 2026·Read answer →

How is a total loss boat typically handled?

The insurer pays the agreed value or actual cash value and takes possession of the boat. The boat is then scrapped or sold for salvage.

Total-lossSettlementProcedures

Published 12 Jan 2026·Read answer →

Are boats permanently in dry dock covered by yacht insurance?

Yes, but with modified coverage. Boats in storage need lay-up endorsements, not full active-use policies.

Dry-dockStorageLay-up

Published 12 Jan 2026·Read answer →

What is hull coverage in yacht insurance?

Hull coverage protects the physical structure of the boat against damage from accidents, storms, theft, and other covered perils. It's the foundation of most yacht insurance policies.

CoverageHullProtection

Published 12 Jan 2026·Read answer →

What is the difference between actual cash value and agreed value?

Actual cash value is determined at the time of loss after depreciation. Agreed value is set upfront and doesn't depreciate.

ValuationPolicy-typesSettlement

Published 12 Jan 2026·Read answer →

What if my boat is damaged in a hurricane?

Hurricane damage is covered if your boat is in covered waters. Lay-up boats in secure storage may have different coverage.

HurricaneWeatherCoverage

Published 12 Jan 2026·Read answer →

What is medical payments coverage on a yacht policy?

Medical payments coverage pays for reasonable medical expenses for injuries sustained by guests on your boat, up to the policy limit.

MedicalGuest-protectionCoverage-types

Published 12 Jan 2026·Read answer →

What happens if my boat is stolen?

Report to police immediately. Insurance covers theft if reported within 30 days. The boat may be deemed a total loss.

TheftStolen-boatsClaims

Published 12 Jan 2026·Read answer →

What does yacht insurance typically cover?

Yacht insurance typically covers the hull, liability, medical payments, uninsured boaters, and protection and indemnity. Coverage varies by policy.

CoverageBasicsInsurance-types

Published 12 Jan 2026·Read answer →

Do I need coverage if my boat is docked and not in use?

Yes, you should maintain coverage even when docked. Lay-up or seasonal policies offer lower rates for boats in storage.

StorageLay-upSeasonal-coverage

Published 12 Jan 2026·Read answer →

What is lay-up coverage and when should I use it?

Lay-up coverage applies when your boat is stored and not used, typically during winter. It provides reduced-cost coverage for stationary boats.

Lay-upSeasonalStorage

Published 12 Jan 2026·Read answer →

How is a total loss determined in yacht insurance?

A boat is typically deemed a total loss when repair costs exceed 70-80% of its current value. Exact threshold varies by policy.

Total-lossValuationSettlement

Published 12 Jan 2026·Read answer →

What is uninsured boater coverage?

Uninsured boater coverage protects you if you're hit by another boat whose operator is uninsured or underinsured and is at fault.

Uninsured-boatersProtectionLiability

Published 12 Jan 2026·Read answer →

Are guest injuries automatically covered by liability?

Liability covers injuries you're legally responsible for. Medical payments coverage is the better choice for guest injuries regardless of fault.

LiabilityMedical-paymentsGuest-protection

Published 12 Jan 2026·Read answer →

What happens to coverage if my boat sinks?

If your boat is covered for sinking, the insurer typically declares it a total loss and pays according to the agreed value or actual cash value.

Total-lossSinkingSettlement

Published 12 Jan 2026·Read answer →

Is pollution from a sunken boat covered?

Pollution liability is optional. If included, environmental cleanup is covered up to limits.

PollutionEnvironmentalCleanup

Published 12 Jan 2026·Read answer →

What is salvage coverage in yacht insurance?

Salvage coverage helps pay for emergency repairs, towing, and wreck removal if your boat is damaged in an accident or sinks.

SalvageEmergency-protectionTowing

Published 12 Jan 2026·Read answer →

What is waiver of subrogation in marine insurance?

Waiver of subrogation prevents the insurance company from pursuing recovery from a third party at fault, protecting relationships with marinas or other parties.

SubrogationLegal-termsPolicy-provisions

Published 12 Jan 2026·Read answer →

Is pollution liability covered by yacht insurance?

Most modern policies include pollution liability coverage for fuel or oil spills, though limits vary by insurer.

PollutionEnvironmentalLiability

Published 12 Jan 2026·Read answer →

What is wreck removal coverage?

Wreck removal coverage pays for the cost of removing your boat if it becomes a total loss and sinks or is abandoned at sea.

Wreck-removalTotal-lossEnvironmental

Published 12 Jan 2026·Read answer →

What is general average in marine insurance?

General average is a maritime law principle where costs of saving a vessel and cargo in emergencies are shared proportionally among owners.

Maritime-lawEmergencyShared-costs

Published 12 Jan 2026·Read answer →

What is a salvage agreement?

A salvage agreement outlines how the insurer can recover value from damaged or lost property through repair, sale, or scrapping.

SalvageRecoveryClaims

Published 12 Jan 2026·Read answer →

What is the subrogation period?

The subrogation period is the timeframe during which an insurance company can pursue recovery from third parties responsible for a loss.

SubrogationLegal-termsRecovery

Published 12 Jan 2026·Read answer →

Do pollution liability certificates (PLCs) relate to yacht insurance?

PLCs are required for commercial vessels but optional for yachts. Many insurers recommend them for offshore operations.

PollutionCertificatesCompliance

Published 12 Jan 2026·Read answer →

Do salvage law procedures affect insurance claims?

Yes. Salvage rights and procedures are governed by maritime law and can affect insurance claim procedures.

Salvage-lawMaritime-lawClaims

Published 12 Jan 2026·Read answer →

Can insurance cover a salvage boat I'm restoring?

Yes, but underwriting is stricter. Some insurers specialize in salvage boats. Full coverage during restoration may be limited.

SalvageRestorationSpecialty

Published 12 Jan 2026·Read answer →

This knowledge base is drawn from curated content and trusted industry sources.
Always consult with your insurance broker for personalised advice.