At Novamar, we understand yacht insurance is a personal product. Boats mean a lot to their owners, and you as a boat owner deserve the best insurance protection possible. At Novamar, our agents have extensive boating backgrounds along with years in the marine insurance industry. This combination of experience, helps your Novamar agent truly understand your boat, how she is used, and more importantly it helps us identify relevant and sometimes obscure exposures to provide the best insurance advice & coverage possible at the most affordable solution available. Not only does Novamar create our own programs where certain niches in the market are underserved, we also represent the major yacht insurance companies on a direct appointment basis. Because Novamar staff have spent the last thirty years creating insurance programs, we are well suited to help you identify the differences between each policy and help you decide which combination of coverages, deductibles, and premiums will best suit your individual needs
Working closely with underwriters in the U.S. and Europe, we created our proprietary Novamar Offshore Insurance Program and Novamar Yacht Program. They offer very comprehensive policy forms, competitive premiums, and coverage is placed with an “A rated” U.S. insurance companies. The programs can currently accommodate yachts up to $2,000,000 in value with limits up to $10,000,000 available in the Novamar Yacht Program. Policies can be customized to include coverage for skippered charters, extended navigation to Mexico, Central America, South Pacific, Caribbean and the Mediterranean. Our Novamar Programs insure yachts from Thailand to Turkey and everywhere in between.
We also created the proprietary Novamar Mexico Vessel Liability Program to make it easy for the thousands of boats and yachts that travel to Mexico annually to purchase their legally required Mexican Vessel Liability policy in just a few minutes online through our sister company, Novamar Insurance Mexico at www.novamrinsurance.com.mx. This program is ONLY available through Novamar and is the only program with no vessel age limit. Ours includes coverage for races and rallies. Most other Mexican Vessel Liability programs exclude racing.
Although a yacht policy will typically provide “Agreed-Value, All-Risk” coverage, it is important to have your insurance agent explain the differences between policy contracts as exclusions vary significantly between insurance companies. Coverage that appears to be included in one area of the policy can be taken away in another.
Below are important aspects of a yacht insurance policy:
True yacht policies are Agreed Value contracts, meaning that if your vessel is declared a total loss you will receive the amount shown on the policy, less your deductible, without depreciation.
Since most losses are partial losses, not total losses, it is important to be aware of how your yacht policy will cover repairs for partial losses.
True yacht policies will pay for repairs without any deduction for depreciation, except on certain items listed in the policy. Most yacht policies will depreciate items such as canvas, upholstery, coverings and engines and machinery over a certain age. When comparing policies it’s important to understand these clauses, as they can have a significant impact on the amount of the claim settlement.
Yacht policies are known as “All Risk” policies. Although this is the broadest form of insurance, it does not mean everything that goes wrong is covered.
It means that all losses are covered, except for those that are excluded
Some typical exclusions are:
Most policies contain many of these exclusions, however some policies include variations of “Consequential Damage” meaning damage resulting from fire, sinking, stranding, and dismasting are covered. When comparing policies one should always look at what is and what is not excluded. An experienced and trusted marine agent can be invaluable in determining these important differences BEFORE a loss occurs.
The liability coverage on a yacht policy is known as Protection & Indemnity and provides broad coverage that protects you from an injured third party. The coverage is much broader than that of a typical small boat policy.
With most yacht policies, Protection and Indemnity covers the boat when operated by the vessel owner, friends that use your boat with your permission, or your captain.
The policy should also cover Longshoreman & Harbor Workers Act and the Jones Act. Tow federal laws providing benefits to paid crew and those working on your boat if injured while in the service of your boat.
In addition, this section of your policy usually provides coverage for wreck removal. Finally when comparing policies it’s important to look at the defense coverage. Some yacht policies will pay the cost to defend you above and beyond your liability limit, however many do not. This means defense costs can eat up the entire P & I Liability limit of coverage leaving you without any money to pay for damages. Look for “Defense outside the Limits” coverage.