What Is a Lay-Up Period in Yacht Insurance?

What Is a Lay-Up Period in Yacht Insurance?

A lay-up period is the time your boat sits idle, like during winter or when it’s stored long-term. During this time, your insurance policy might have special rules to keep your coverage valid and your boat safe.

Why Lay-Up Periods Matter for Your Coverage

If your boat isn’t in use, your insurer expects it to be securely stored. Failing to meet these conditions could leave you uncovered. For example, if your policy requires the boat to be hauled out of the water and stored on a trailer, leaving it in the water unattended might void your claim if it’s damaged.

Lay-Up Warranties: What You Must Do

A lay-up warranty is a set of rules your policy imposes during storage. This might include: - Draining fuel tanks to prevent leaks. - Covering the boat with a breathable tarp. - Storing it in a secure, dry location. Ignoring these steps could mean your insurer refuses to pay for a claim, even if the damage seems unrelated.

Navigation Limits and Lay-Up

Your policy likely restricts where your boat can be during lay-up. For instance, if you’re required to keep it in a specific marina or on land, moving it without updating your insurer might reduce your coverage. Some policies even require written notice if you change storage locations.

Agreed Value vs. Actual Cash Value During Lay-Up

If your boat is damaged while stored, the payout depends on whether you chose agreed value or actual cash value (ACV). With agreed value, you and the insurer set a fixed amount upfront—so depreciation doesn’t matter. With ACV, the payout reflects the boat’s current market value, which might be lower if it’s old or not well-maintained during storage.

• Check your policy’s lay-up warranty for storage rules (e.g., fuel, covers, security).
• Notify your insurer if you move your boat during lay-up, even if it’s just to a new marina.
• Review your agreed value vs. ACV choice to ensure it matches your risk tolerance.
• Document the boat’s condition before storage with photos and maintenance records.
• Avoid using the boat for any activity during lay-up, even casual trips, unless approved.

Before storing your boat, read your policy’s lay-up terms carefully. If the rules feel unclear, call your insurer to confirm how to keep your coverage active—and avoid surprises if the unexpected happens.