Finding the best insurance policy and agent for your trawler or motor yacht can be complex and perplexing. Marine Insurance is a highly specific discipline, and a far different product than that which you buy for your residence and auto. It is by the way, the oldest kind of insurance and often ruled by its own body of Maritime Law.
There are the obvious coverages such as Hull Coverage and Protection and Indemnity Insurance, but there are numerous other considerations as well. Hull coverage usually includes the hull and all items on the trawler or motor yacht that are permanently attached or are on the trawler or motor yacht and used in the regular operation of the boat, i.e. electronics, TV’s etc. Several policies will offer you a reduced deductible for marine electronics which might be a fine choice given the price tag to replace these things and the frequency of loss or damage to the electronics by storm and/or theft.
Frequently you can buy Hull insurance at Agreed Value, meaning that you and your insurance company “agree” on the worth of your boat. If there is a total loss you would be covered for the amount shown on the Declaration Page of the Policy.
There is also another option, Actual Cash Value (ACV). This means that if your yacht was totaled in a loss you would be offered a depreciated settlement – the current market value of the trawler or motor yacht. Most losses are partial losses and you could expect a reduced settlement on that also. While Actual Cash Value will be less expensive, beware, you may also discover that if you suffer a loss you are getting much less than you bargained for.
Be certain to talk to your agent about how your loss would be settled for both a whole loss and a partial loss and what would be subject to depreciation. Often things like canvas, cushions, engines etc. are subject to depreciation. A few policies essentially exempt canvas from wind storm damage.
You will also need to be sure that the policy you buy covers salvage, environmental cleanup in the event of fuel spills, sue and labor and wreck removal. Often the recovery of a yacht could exhaust your policy restrictions were it not for these extra coverages often included in the better marine insurance policies.
Most recreational marine policies will have a navigation area. It is more often than not a warranty of the policy and therefore extremely significant that it is accurate on your policy. A warranty is very strong language in a policy and if you are out of the navigation restrictions shown on the declaration page, you probably would not have any insurance coverage should you sustain a loss. You will want to talk to your agent about this and make certain you have the coverage you need; keeping in mind this is a vital factor in determining the cost.
Lay-up dates are also something you will want to talk about with your agent. You could be entitled to some premium discount if the trawler or motor yacht is on the hard during the winter season. Some other things that could result in a discount are boating classes, USCG Captain License, and equipment on your trawler or motor yacht such as anti-theft devices.
If you are in hurricane areas, a layup will often be covered by the policy to protect the yacht from damage by an active storm.
Furthermore, many vessel policies will have Longshore and Harbor Workers Compensation which would cover you if you become lawfully obligated under the Longshore and Harbor Workers Compensation Act for any bodily injuries arising from the ownership, maintenance or use of a yacht. Jones Act coverage would also be essential if you employ crew or have a captain.
Always look at the Exclusion section of the policy so you know what is not covered.
Since Marine Insurance is a separate animal, you will want to work with an Agent that understands trawler or motor yachting and understands the marine insurance industry, so they will be familiar with how to advise you.