Yacht and Boat Insurance

Yacht Insurance Frequently Asked Questions (FAQ’s)

What’s the difference between agreed value and actual cash value coverage?

Agreed value coverage means you and your insurer set a fixed payout amount for a total loss when the policy is written — there’s no deduction for depreciation, so you know exactly what you’d recover. Actual cash value coverage instead pays the replacement cost minus depreciation at the time of loss. Most yacht owners prefer agreed value for the certainty it provides, though it typically comes with a higher premium than actual cash value.

Do hurricanes affect my yacht insurance deductible?

Yes. Many yacht policies in Florida and the Caribbean carry a separate named-storm deductible — often a percentage of the vessel’s insured value — that applies specifically to hurricane-related losses, in addition to your standard deductible. Understanding how your policy defines and applies this deductible is an important part of choosing the right coverage. See our article on Hurricane Season Insurance

What is a lay-up period, and why does it matter?

A lay-up period is a stretch of time — commonly during hurricane season — when your policy may require the vessel to be hauled out of the water and secured on land. Complying with a lay-up warranty can be a condition of maintaining full coverage or avoiding the named-storm deductible, so it’s worth confirming these requirements with your agent before storm season begins.

Does yacht insurance cover crew liability?

For yachts with paid crew, coverage can extend to the owner’s liability for crew injury or illness, which is treated differently than liability for third-party injury or property damage. If you employ crew, it’s worth discussing crew liability coverage separately with your agent to make sure it’s addressed in your policy.