Yacht Insurance Exclusions Examined - What Is Excluded from Yacht Insurance?
The sea is unpredictable and full of ways to damage a ship. Insurance companies
like to tell you what is covered while failing to mention what is not covered.
This can lead a person to believe his coverage looks pretty full, when in reality
a number of important risks are missing from the policy. When an insurance
company does list what is not covered, they often try to mask it in legal-speak
so that the reader glances over it or feels it is not important to the policy.
While it may not make financial sense to pay for a policy that covers every
possible situation, you should make sure you understand exactly what is and
is not covered. You may decide that a certain form of coverage is not important
to you, but you do not want to be missing out on a form of coverage that you
think you will need.
After the damage done by recent hurricanes many insurance companies changed
their policies to include wind exclusions, wind deductibles, storm exclusions,
and hurricane deductibles from their yacht insurance policies. While the insurance companies have to notify policyholders
of these changes, many underestimate the importance of these exclusions. Wind
exclusions allow an insurance company to not have to pay for damage done by
the wind, and the wind deductibles mean that the policyholder has to pay an
extra deductible on damage done by the wind. If you live in an area that gets
hurricanes frequently, you should expect there to be such exclusions on your
War risk coverage used to be a part of more standard marine policies but recently
they have been removed from standard policies and given their own separate
policy. For many boaters war risk policies are not important but if you do
any boating around Africa or the Mediterranean you might want to pay for the
extra war risk coverage. Damage done to your boat in a battle is not covered
under normal or natural damage.
Most policies in the United States cover you for occasional trips in waters
all around the country, but your boat must be principally operated in a specific
region. If you move to a new city you will probably need a new policy, so do
not take your boat out unless you have updated your policy after moving. Some
policies do not cover occasional travel to anywhere in the world and instead
only cover specific regions. It is important to know where you are covered
as well as not to pay for coverage you do not need. If you only make small
trips worldwide coverage is not needed. If you make long trips to many different
places then you should make sure you are not leaving your coverage zone.
While most policies cover damage done to your
boat by natural means, they do not cover wear and tear. The owner of the
boat is responsible for maintenance. Some insurance companies will not cover
damage if they feel the damage would have been prevented by proper maintenance,
even if the final cause of the damage was a natural occurrence. It is important
to stay on top of the boat’s
maintenance and keep accurate records. If damage does occur you can show the
insurance company your records to prove that proper maintenance could not have
prevented the damage.