Theft of or Property Damage to Your Watercraft

Depending on the length of the vessel and horsepower of the motor, your homeowners’ policy may extend minimal coverage for property damage and liability to some of your watercraft. However, it is not meant to handle all coverage needed for watercraft.

“Yacht” policies are specifically written to provide coverage for losses involving boats. The many aspects of a Yacht policy can be difficult to understand. These points can help you understand your coverage:

• Hull Coverage: This section of the policy provides physical damage coverage to the boat and boat equipment.
• A deductible is generally attached to Hull Coverage; it is based on a percentage of the boat’s agreed value.
• There is coverage for various situations and causes, such as for collision and vandalism. It is best to speak with our adjuster and file a claim in order to confirm coverage for a specific loss.
• Coverage typically does not extend to losses involving things such as mechanical breakdown, wear-and-tear issues, or negligence.
• Navigational Period: This is the portion of the year that your boat is actually in the water and in use; it is generally stipulated by the policyholder when establishing the policy. If a loss were to occur to the boat while in use outside of the selected navigational period, the loss would typically not be covered. 
• Lay-Up Period: This is the portion of the year opposite the navigational period—the period when the boat is taken out of the water. The boat is generally covered during this time while out of the water on the insured’s property or at a marina. 
• Waters Navigated: This details the area(s) in which the boat will be used as stipulated by the policyholder. If the boat is to be used outside of the selected area(s), then Electric Insurance should be notified beforehand to avoid any potential coverage issues. 
• Your Yacht policy will also generally provide coverage for property damage and bodily injury to others when the insured is found to be legally liable. 
• All coverage, limits, and conditions will be verified by a licensed adjuster after a claim is filed for a loss.