The importance of insurance when buying a luxury yacht

Buying the yacht of your dreams is a major investment, depending not only on the size and equipment of the yacht, but also on the costs of maintenance, fuel and crew, moorings and sailing areas. Insurance is particularly important when buying a yacht, to protect it and the people on board in the event of an accident. It will enable you to deal with unforeseen financial circumstances thanks to the guarantees it offers. Here’s a closer look at what you need to know about luxury yacht insurance to ensure you sail with peace of mind.

Is yacht insurance compulsory?

Although it is not strictly compulsory to sail, insurance for a luxury yacht is strongly recommended to limit the cost of major repairs in the event of a claim, for example. Finally, you should be aware that some marinas require at least third-party liability insurance before you are allowed to moor there: it will cover you in the event of damage to property or personal injury. As a general rule, find out about the local regulations in force in a country or region before you go there.

What cover does luxury yacht insurance provide?

Multi-risk policies are preferable to third-party insurance, as they are better suited to the considerable investment involved in buying a luxury yacht, offering you a wide choice of cover:

• Civil liability insurance: this covers damage to property or injury to third parties for which you, the crew or passengers could be held responsible. It will help you avoid incurring major costs in the event of a dispute.
• Medical assistance or repatriation costs for people on board the yacht in the event of accident or injury.
• Loss and damage: this cover protects you against the risks of accidents, collisions, storms, shipwrecks and even fire.
• Protection against vandalism and theft of personal property on the boat.
• Assistance and salvage costs in the event of breakdown.
• The cost of refloating or destroying the wreck if it is considered to be an obstacle to navigation.
• Legal protection in the event of disputes or litigation with a third party.

To avoid disappointment, be sure to examine the exclusions and check the deductibles stated in the insurance contract.

How much does luxury yacht insurance cost?

The size of your yacht, its value, the year it was built, its power, the sailing areas used and the type of insurance you take out are all criteria to be taken into account when calculating the cost of protecting your boat. Note that an experienced crew can lower the insurance premiums for your luxury yacht. This will also be the case if you choose to pay a high excess.

So be sure to do some online comparisons and request a personalised quote from several insurance companies to get an accurate estimate of the costs involved. You can also use the services of brokers specialising in boat and yacht insurance, who will be able to offer you the package best suited to your needs and budget.

How do you report a claim to your insurance company?

Once you have ascertained the damage and informed your insurance company, complete the claim form, giving precise details of the circumstances of the accident or theft (date, place, names of people involved) and its consequences in terms of material damage or injury.

Make sure you enclose as many supporting documents as possible (photographs, purchase or repair invoices, prescription or medical certificate, navigation licence, boat registration document, receipt for filing a complaint in the event of theft) so that you can receive satisfactory reimbursement from your insurer. Send your claim by registered letter with acknowledgement of receipt within the time limits specified in your insurance contract, which are generally two working days in the case of theft, or five working days from the date on which the claim is established.

While it’s true that buying a luxury yacht is a major investment in itself, taking out an insurance policy for your luxury yacht is an essential solution if you want to enjoy the pleasures of sailing to the full. By insuring your boat, you can considerably reduce unforeseen expenses linked, for example, to material damage caused by accidents at sea. You should therefore carefully study the different cover and options offered by insurance companies to choose the one that best suits the value of your yacht, your type of sailing, your destinations and your budget.