Wrong! These are two party contracts that are largely unregulated by state insurance departments. In other words yacht insurance companies have a free hand to write exclusionary wording as they see fit. The coverages, and more importantly, exclusions vary greatly from policy to policy. Is vessel damage due to hitting a whale covered? If my boat sinks at the dock due to a through hull failure am I covered? Can I can loan my boat to a friend and still have coverage? Is my boat covered for the Agreed Value on the policy or a depreciated amount?
The answer to all of these questions and many others is the same – maybe yes, maybe no. It all depends on the policy contract wording. Call a Novamar Insurance representative to find out. Before the loss occurs!
Why do insurance agents ask me for the mooring location of my boat? They don't ask me to tell them when I park my car in a different parking lot. Yacht insurance policies have navigation limits and rates based on areas of navigation. Premiums vary greatly depending on weather conditions, navigational hazards, and availability of repair facilities in various areas around the U.S. and around the world. It is important for insurance companies to know how many boats they insure in a given marina and harbor so that they can monitor their exposure in the event of a catastrophe i.e. marina fire or hurricane. If an insurance company and your agent know where their insured boats are located, they can contact their clients to take precautions prior to an impending storm making landfall AND dispatch catastrophe teams to the site after the storm or fire hits to immediately start settling claims.
Will taking friends sailing void the "Private Pleasure Warranty" of my policy?
The answer is a definite maybe. One of the warranties or provisions in a standard yacht policy is what is commonly referred to as the "Private Pleasure Warranty". If a vessel owner accepts remuneration in exchange for being aboard the yacht, it can constitute a violation of the Private Pleasure Warranty resulting in a policy that is null and void. If a friend brings along snacks, and drinks am I at risk of losing my coverage? It is best to check with your agent, but generally speaking if a guest brings food, drinks, pays money, or provides any other compensation as a requirement to be aboard your vessel, then your policy is in jeopardy. Ask a Novamar Insurance Group representative or your current agent BEFORE a loss occurs.
The Mexican government requires boat liability coverage to be purchased through a Mexican domiciled insurance company. Because it has become so easy to cruise between the U.S. and Mexico, we sometimes forget each country has its own laws and customs to follow. Mexico's Napoleonic civil liability laws view liability much differently than in the U.S. When a liability loss occurs, it is important to have an insurance company appointed adjuster communicate on your behalf with the authorities immediately. Without it, you are subject to fines, arrest and your yacht maybe detained indefinitely until the situation is remedied.