As you search for yacht insurance in Newport Beach, you’ll come across a number of options. With each carrier having their own way of describing their coverages, finding the right policy for your boat can be confusing. To help simplify the process, here are the fundamental concepts of yacht insurance that you should be sure to understand.
There are several types of coverage available. These are the basic coverages that your policy should include at a minimum.
Liability insurance – covers injuries to guests on board your yacht.
Bodily injury insurance – covers injuries to individuals not on your yacht during an accident.
Property damage insurance – covers damage to the other persons boat or property during an accident.
Agreed Upon Versus Actual Cash Value
In most cases, you’ll come across two types of yacht insurance policies for accident coverage, agreed upon and actual cash value. With agreed upon cash value policies, the policy will pay to replace your boat up to the replacement amount that you and the carrier previously agreed on. On the other hand, actual cash value policies will pay to replace the yacht based on its value minus any depreciation at the time of the accident.
A proper understanding of these fundamental principles can help to simplify your search for yacht insurance in Newport Beach. Look for the differences in coverage’s when comparing potential carriers to one another.