After purchasing a yacht, you can’t wait to use it. Before you can start using the yacht charter in Tulum, you should ensure that you have acquired an insurance policy. It is important to take into account such factors. This article will look into five facts that you should know when choosing a boat insurance policy.
What is Yacht Insurance?
To get a clear picture of this insurance policy, assume that you are out in any water body, even an ocean. You are enjoying the scenery and everything around you. Unfortunately, you end up hitting a boulder that is not noticeable since the water has covered it. Your yacht will incur some damage, and you will end up incurring significant repair costs.
The insurance policy comes in handy in such instances. If you have the yacht insurance policy, it will help to cater to the repair costs. For yacht owners without an insurance policy, they will have to pay for everything from their pocket. The insurance policy insures your yacht in case of damage and covers the loss of the yacht.
Below are facts that you should know as you look for a yacht insurance policy:
1. How Does the Insurance Policy Work?
There are insurance providers who can offer an insurance policy for your home, car, and yacht. In such an instance, you will be relying on one insurance provider instead of multiple. As you acquire an insurance policy, you should be making decisions regarding:
· The amount of coverage that you need
· The coverage type you want
As you approach an insurance firm and you want to insure your yacht, the main factors they will consider include:
· The age of the yacht
· The horsepower and speed
· The length
· The condition of the yacht
· Is the yacht a primary residence?
· The type of yacht
· In which water body are you operating the yacht
· How many people own the yacht?
The cost of the policy is dependent on the answers to each of these questions. It may be high or low. For instance, if the yacht has a high speed and costs a significant sum of money, you will be required to remit a considerable sum of money to insure the yacht.
2. What Does the Insurance Policy Cover?
The insurance policy covers the following:
· Property damage liability- you are covered in case you crash into another person’s yacht.
· Collision damage- this entails replacing and repairing the boat. However, it does not cover the clean-up wreckage. If you are concerned about such issues, you should hire a professional who will commandeer the yacht on your behalf.
3. Is the Yacht Covered Out of Water?
Your yacht may be on a trailer, and it is being pushed by your car. In this case, the auto policy comes in handy, and limits depend on the insurance policy you have applied for. Ensure you have familiarized yourself with everything.
4. Does the Insurance Policy Ensure You Are Covered Everywhere?
If you have a small yacht, it may have the “navigational warranty,” which acts as a determinant to whether the insurance policy will be in full effect. For instance, the policy covers the inland waters in Canada and the U.S.
For larger boats, the policies are different. Some regions will be excluded for security reasons. The best example is an area full of pirates. In such a place, you are supposed to focus on the assault weapon that will prove useful in case of an attack.
5. Is It Possible to Save Money on the Insurance Policy?
For starters, purchase an insurance policy specific to your yacht. Never purchase a policy that you don’t need. Also, ask whether there is a discount if your yacht has unique features.
By ensuring you are conversant with each of these facts listed above, the process of purchasing the insurance policy will be seamless.