Nothing beats the joy of sipping a cold beverage in the mild sun, rocked gently by the waves as the sprawling mass of the ocean invites you to set sail and witness the wonders of Nature. You can take your kids out for a day of fun in the sun or spend a charming moonlit evening in the open seas with your guests over champagne: the choices are endless!
But before that happens, the one thing you need to know, and most importantly, consider, is yacht insurance.
If you haven’t planned this already, then it is time to learn about insuring your boat and protect it from being damaged by the choppy seas. While this may not be the sort of thing that you would like to imagine while planning a fun vacation, it is still necessary.
Luckily for you, we are here to help! Before you set out to buy a yacht insurance in Dubai, here are some crucial things you must know to make an informed decision:
What Does a Yacht Insurance Cover?
Traditionally, a yacht insurance covers collision damage that includes repair and replacement of your boat. However, it may not include wreckage clean-up, so be sure to check on that. You also get covered for an accidental crash that may cause damage to someone else’s boat or dock, also known as property damage liability. Additionally, you can also get engine damage cover, cover for weather-related damage, payments for medical bills, oil spills, loss or damage of fishing equipment etc.
Your Boat is Covered out of Water as Well
This might come as a surprise but did you know that your insurer will cover your boat not just on water but outside of it as well? Although the experts recommend checking the policy limitations before buying a yacht insurance in Dubai.
Your Insurance Will Cover Certain Coastal Waters but Not All
Depending on the policy you take and the size of your boat, your policy may come with a navigational warranty. Different types of yachts are covered up to a certain area in the coastal waters. However, there are some areas that may not be included. So be sure to check up on that before you venture too far from the safe zone and incur a damage.
Yacht Insurance is not a Necessity, it is a Requirement
As the number of boats swell in Dubai harbour, marinas have made it mandatory for yacht owners to have an insurance. This is especially necessary when you want to dock your boat on a marina. Yachts are a costly affair and not having them insured can be a serious risk to your investment.
Ask About Market Value or Agreed Value Coverage
You may not know it but as soon as you buy your expensive yacht, its value starts depreciating. That being said, your yacht insurance will either cover you for the agreed value or the market value. A policy based on agreed value will cover the yacht’s value at the time of writing the policy. A market value, however, covers the actual market value of the yacht at the time of damage. Your insurer will insist that you buy the latter. Needless to say, it is better to opt for an agreed value coverage, if you want to stop worrying about depreciation.