When reviewing and comparing insurance policies, you need to consider the following key points:
- Exclusions – all yacht policies are written on an “all risks” basis. Are you aware of the exclusions and exceptions where losses are not paid?
- Basis to Settlement – is depreciation applicable to a claim, thus reducing the amount you are eligible to recover?
- Resultant Damage – will your policy cover you for a loss due to wear and tear or gradual deterioration even if there was a reasonable inspection?
- Personal Effects – does your policy cover personal belongings or will you have to claim through your home insurance, leaving you to deal with a second insurer in addition to losing your claims free status on your home policy?
- Warranties – has the underwriter added any warranties to the policy that restrict coverage?
- Liability Insurance – are legal fees included within your policy’s limits or above those limits?
- Contractual Liability – does the liability insurance include those liabilities arising from standard contracts such as moorage agreements?
- Additional Coverages – what “extras” are missing? Will you be out of pocket for commercial towing or diving, living expenses and/or relocation costs?