The open seas, the gentle sway of the boat, and the cool breeze of the ocean—owning a yacht is a luxurious and exciting way of life. But, as with any expensive item, protecting your boat from possible dangers is very important. When you’re on the water, yacht insurance is like an anchor that keeps you safe from all kinds of bad things that could happen. We’ll get into the specifics of boat insurance in this blog post, looking at the coverage it provides and why yacht owners must have it.

What is Yacht Insurance?

Yacht insurance is a type of insurance that covers a sailing boat’s indemnification and responsibility. It covers damage to other people’s property or injuries to people on the vessel, as well as damage to personal property on the boat. Depending on the insurance company, this insurance might also cover getting gas delivered, towing, and help if your boat gets stuck. For further details check Texas boat insurance to get a free quote.

How Yacht Insurance Works?

Yacht insurance is a special kind of coverage made to protect yacht owners from the risks that come with having and running these fancy boats. Yachts are valuable items that are often a significant investment. Because of how they are built, they need special insurance coverage. Yacht owners need to know how their insurance works in order to protect their finances and have peace of mind while they enjoy their boating activities.

One of the most essential parts of yacht insurance is that it takes into account all the different risks that boats face. Such as damage from accidents and bad weather, theft, and even being responsible for hurting or damaging other people. Policies for yachts are designed to cover all of these risks through complete coverage.

Under this type of covering, hull and machinery insurance guards against damage to the yacht’s structure. This can include damage from crashes, sinking, stalling, or other things that were not planned for. Policies may also cover the yacht’s equipment, furniture, and personal belongings while it’s in port, ultimately protecting the owner’s investment.

Additionally, yacht liability insurance is critical because it protects the owner if their boat damages other boats or property or hurts someone. This security goes beyond the ship itself and includes legal and financial issues that may come up because of crashes or other events involving the insured yacht.

Yacht owners can change their insurance plans to fit their wants and preferences a lot of the time. You can choose to have coverage for towing and support services, for your personal effects and items on board. Moreover, for damage to the environment caused by fuel spills or other pollutants.

Two Parts of Yacht Insurance

When you buy boat insurance, there are two main parts.

Hull insuranceProtection and indemnity (P&I)
Cover for all risks and direct damage to the hull, with a set amount of coverage for the hull. You will get that much money back in full if you lose everything. It’s decided upon when the insurance is bought. Damages to parts of the boat are also covered up to the cost of replacing it. However, sails, canvas, batteries, outboard motors, and sometimes outdrives are not protected and will lose value over time. Protection and indemnity (P&I) insurance protects you from most possible risks. Because maritime law is so specific, you will need insurance that is made to cover those risks. The Jones Act protects the crew of the boat as well as the safety of longshore and harbor workers. This is important because you could lose six figures in these places. P&I will pay for your defense in admiralty courts if someone makes a case against you.

Why do People Need Yacht Insurance?

Even though you don’t have to, you should get yacht insurance to protect yourself, your boat, and the people who are with you and around you. Moreover, many ports require yacht insurance before you can use a slip or mooring. If you’re getting a loan to buy your boat, you’ll need insurance to protect the lender’s money.

Additional Coverage Features

Most of the time, Yacht insurance companies provide extra safety features that make the cover better, such as;

Medical Payments

Pays for reasonable medical costs for everyone on board, getting on or off the covered boat, per person. The cost of an emergency, care, and hospital stays may be part of this.

Emergency Assistance

It covers the costs of getting emergency help, even if you and your boat are not in immediate danger. For example, it covers the costs of towing a yacht that got stuck at sea.

Uninsured boater coverage

If someone on your yacht gets hurt by another yacht’s uninsured owner or operator. Uninsured boater coverage will pay for their medical bills and lost wages.

Bottom Inspection

Covers the reasonable costs of inspecting a boat after it hits something submerged or runs aground, even if no damage is found. There are no penalties for this.

Marine Habitat

This covers the costs you need to pay if you legally damage marine habitat by bringing your yacht into contact with it. Like when you drop your anchor on a protected coral reef. It also offers extra coverage that you can choose to use if you want to.

Boat Show and Demonstration Coverage

Covers the boat while it is on display at official boat shows, during sea trials, and while it is being sailed for training purposes.

Personal Accident Coverage

This is a no-fault product that can cover accidental death or permanent disability for insured people, including the yacht owner, even if the accident has nothing to do with the yacht itself.

Crew Liability

Most boat insurance policies don’t cover liabilities to the crew. If you hire staff, you will need to buy separate yacht liability insurance that covers up to $500 million. As already said, this can be made bigger by adding Personal Accident Coverage for them.

Yacht Insurance Through Insurance Brokerage

Insurance Brokerage of Texas knows how much your things are worth, especially investments like boats that are very valuable. We are proud to have helped many owners across the state with our dedicated team of experienced agents and claims experts.

Why you should get your yacht insured through Insurance Brokerage of Texas:

  • You can be sure that you are getting the right amount of safety because we tailor insurance plans to the specific needs of your yacht.
  • Our team of experienced agents and claims experts is here to help you with any questions you have and walk you through the insurance process.
  • We bring a lot of experience to the table because we have helped boat owners all over Texas in the past.
  • If you need to file a claim, our team is committed to helping you quickly and effectively so you can get back on the water as soon as possible.
  • Get in touch with us right away to get a quote that is tailored to the needs of your boat. We work hard to keep our prices low without lowering the standard of our service.

If you are looking for yatch insurance in Texas, especially in Corpus Christi; Insurance Brokerage of Texas can help you protect your yacht. Get in touch with us right away to talk about your boat insurance needs and get a personalized quote. We care most about your safety on the water.


Can you self insure a yacht?

Yes, if you finance the boat, the financer will require hull insurance. However, if you avoid using the boat as collateral, you can self-insure it. Almost five years of premia can equal the cost of the boat.

What Doesn’t Yacht Insurance Cover?

Boat insurance won’t cover regular wear and tear, damage from mold or animals or bugs, or broken or malfunctioning gear. Things like fishing gear that aren’t related to the business may not be covered at all or only partly.

How much is boat insurance on a 50000 boat?

You can expect the annual cost of your boat insurance to be about 1.5% of the value of your boat.