4 Tips To Get An Affordable Yacht Insurance Policy

Are you purchasing a boat to spend time sailing abroad? Perhaps a sailboat or a catamaran to sail the Caribbean, South America, or maybe even Europe and Asia? It can be an exciting adventure, but also a risky one. You'll likely have almost all your possessions on your boat, which will essentially be your home during the journey. Yacht insurance can protect you during your trip by covering costs for repairs, damage, and even total loss of the boat. Yacht insurance is also required to enter some ports and some providers require it to get a tow or haul-out service

Unfortunately, yacht insurance can be difficult to obtain, especially if you're new to sailing the seas.  If you can get insurance, you may find that the premiums are so high that you can't afford it. Fortunately, there are steps you can take to reduce the premiums and make the insurance more affordable. Below are a few tips to consider:

Be smart with your cruising plan

Most insurers will ask for a cruising plan so they know where the boat will be at any given time. The cruising plan has a significant impact on your premium amount. If you stay in safer parts of the world, you will likely see your premiums go down. There are some parts of the world that either aren't allowed under some policies or drive up the premiums to unaffordable levels.

For example, if you want to sail to Cuba, you can do so, but you likely won't have coverage during that leg of your trip. Some areas off the coast of Africa where piracy is prevalent are also dangerous areas. Talk to your insurer and see if there are any destinations in your plan that are driving up the costs.

Keep it to the boat only

Many yacht insurers will offer a wide range of coverage options, including coverage for personal possessions, boat towing, and even healthcare while at see. Cover what you can through other policies so the yacht insurance is just for the boat itself. For example, you may be able to cover personal possessions on your homeowner's policy. Your health insurance may offer health protection overseas. You can likely find low-cost tow services outside of your insurance plan. Be smart about what is actually in the plan.

Be realistic with your boat's value

One of the best ways to save on insurance is to reduce the value of your protected boat. In the event your boat is completely damaged, you definitely want enough to replace the vessel, but you don't want to profit. Look at the marketplace and see what similar boats are selling for. Consider age, amenities, usage, and more. And then err on the conservative side when placing a value on the policy. 

Ready to start your adventure on the high seas? Contact an agent to learn more about insurance such as Caribbean yacht insurance.