What Kind of Boat Insurance Do You Need for Yachts and Luxury Vessels?

As the yachting capital of the United States, Florida’s waters welcome some of the most beautiful and expensive vessels in the world. Whether you’re cruising the Intracoastal Waterway, island hopping in the Keys, or venturing further afield, owning a yacht or luxury vessel is an investment that requires thoughtful protection. What kind of boat insurance should you get?

Boat Insurance Basic: Liability

The state does not legally mandate insurance for boats; however, savvy yacht owners know that liability insurance is an absolute necessity. Liability coverage protects you financially if you’re found responsible for an accident that causes property damage, bodily injury, or even death.

Comprehensive Coverage for Your Florida Investment

Beyond liability, consider these key areas of yacht insurance coverage:

Agreed Value Coverage: This is the preferred option for high-value vessels. Unlike actual cash value coverage (which factors in depreciation), agreed value coverage means you’ll receive a predetermined amount if your yacht is a total loss.
Physical Damage: Covers repairs or replacement in the event of fire, theft, vandalism, storms, and collisions.
Medical Payments: Covers medical bills for you and your passengers.
Uninsured Boater Coverage: Protects you if you’re in an accident with someone who lacks insurance or has insufficient coverage.
Towing and Salvage: Helps cover the costs of a necessary tow or retrieving your vessel if it runs aground.

Specialized Coverage for Yachts

Depending on how you use your yacht, you might also want to consider additional coverage options:

Personal Property: Covers your belongings onboard, from electronics and jewelry to fishing gear.
Crew Coverage: Provides liability and medical coverage for your captain and crew.
Charter Coverage: If you rent out your yacht, this specialized insurance is essential.
Hurricane Plans: The hurricane season demands careful planning and potential insurance coverage for named storms.