At the D.O.K. Insurance Agency, we have partnered with some of the best insurance companies in the watercraft industry. Especially larger boats and yachts need to be insured carefully. Keep in mind that some yachts policies can be over 50 pages long so it’s important to understand what is covered and what is excluded. Here are the most important things to keep in mind and look out for:

Before you take your boat from Seattle to Alaska or from San Diego to Mexico, make sure you are covered. Most watercraft policies have very specific territories (either named bodies of water, distance from coast or latitude and longitude).

If you see a yacht policy that offers ACV, make sure you understand what that means. For example, if you purchase a $250,000 yacht and its value was confirmed by a marine survey, the ACV – which takes depreciation into account – could drastically decrease in the near future just like with car values. If a policy is written on an Agreed Value basis, the insurance company – just like the term implies – agrees to insure the vessel up to a certain amount. Keep in mind that it’s important to inform your company of any upgrades.

We generally recommend obtaining a policy that matches the “spill” limits with the liability limits.

If you have invite guests onto your vessel, make sure that both your medical payment and liability limits are high. Accidents happen and when they happen on open waters, those can be devastating and costly.

The same goes if you decide to co-own/share a watercraft, charter it or otherwise have someone but yourself operate it.

We strongly recommend that you frequently review your insurance policy. If it’s been more than 1 year since the last time you and your agent or insurance representative have looked over the coverages, please give us a call.