One of the best ways to spend a nice summer day is out on the water on your very own yacht. While you can spend a lot of time enjoying your yacht for recreational purposes, owning a yacht also comes with a lot of responsibility. One responsibility that you have when you own a yacht is to get an insurance policy on it. There are several important reasons why you need to make sure that your yacht is insured at all times.
Protects the Asset
One of the main advantages of getting insurance on your yacht is that it will help to protect your valuable asset. Buying a yacht, or any kind of boat, is a big purchase and investment. If you happen to be in an accident or if it is damaged by a storm or vandalism, it could be very expensive to replace the boat. Because of this, you need to make sure that you have yacht insurance as it will protect your asset from a variety of losses.
Gives Liability Protection
Whenever you take out a yacht onto the open water, you are taking on a lot of risk and responsibility. If someone else is injured in the water or on your boat due to your negligence, you could be found liable. Because of this, you need to make sure that you have a proper yacht insurance policy in place to give you the appropriate liability protection.
Required by Lender
Since purchasing a yacht can be a very big expense, many people will go to a bank to take out a loan to finance the purchase. When you do take out a loan, the lender will undoubtedly require that you carry yacht insurance at all times. If you do not carry this insurance, you may not qualify for a loan or you could be in violation of the boat loan agreement. Some lenders may also require you to escrow payments to ensure you stay in compliance.
Local Law Requirements
While yacht insurance normally is not required by a state, there are still plenty of local regulations that you need to comply with that could require you to have insurance at all times. Many recreational lakes and marinas have policies in place that will require you to carry yacht insurance. If you do not have this insurance, you could be prevented from going out onto the body of water.
Ultimately, you yacht is a very important asset that needs to be properly cared for. One of the best ways that you can do this is by getting yacht insurance. When you have yacht insurance, you will also have the peace of mind that you need to know that you are properly covered and protected.