Boat Insurance vs Yacht Insurance – What’s the Difference?

If you are considering getting your boat insured, then you should consider which would be best for your vessel: boat or yacht insurance?

The policy that you choose will dictate a lot about how and where you can use your ship.  But what is the difference between boat and yacht insurance? 

Simply put, yacht insurance covers more precise and wider-reaching insurance coverages for larger vessels.

Yachts are considered to be vessels that measure 27 feet or more in length, whereas boats tend to be 25 feet in length or less. 

So, what will your yacht insurance cover for you, and which boat insurance policy of the two will be the most expensive? 

What Are the Major Difference Between Boat and Yacht Insurance?

As you may know, a standard boat insurance policy covers what are generally considered to be smaller boats (up to 26 feet).

Of course, the specific types of boat insurance policies depend on the boats themselves.

It is important to remember that a ‘boat’ can be anything from a fishing vessel or speedboat to a recreational or professional vessel.

As you can imagine, these different kinds of boats require different levels of insurance based on their age, where they go, who helms them, what they are used for, their market value, the mooring locations, etc. 

However, a general boat insurance coverage usually offers liability, personal property damage, assistance, and will even cover physical damage. 

You should be able to add other things to your insurance terms based on your specific vessel (for example, insuring your fishing equipment). 

However, the policies are a little more precise when it comes to yacht insurance.

Given that yachts (boats over 27 feet) tend to go further into the ocean, even crossing them, the insurance policies have to be able to meet the needs of owners. 

Generally speaking, every yacht insurance policy should contain the general terms that you would find in typical boat coverage.

As is the case with boat insurance, you will also be able to add fuel spills coverages and coverage for other boats that are uninsured or even underinsured. 

If you do plan on travelling far with your yacht, then you will also be able to extend the insurance past the general navigational limits to follow where you plan to go.

Another thing that tends to be added to yacht policies specifically is certain weather coverage – for example, hurricane coverage.

This will, of course, depend on where you are planning on travelling with your yacht, but it is definitely worth considering. 

Specifically, yacht coverage generally oversees P&I insurance (protection and indemnity) and hull insurance. 

To distinguish boat insurance from yacht insurance, the main things to remember are that yachts tend to be the bigger vessels and that, therefore, their insurance policies tend to be more specific and have broader coverages to cater to greater navigational areas. 

In short, the P&I coverage extends past the general liability coverage that is included in most boat insurances.

It adds certain coverages to meet maritime law. For example, it can cover bodily injury to a crew member and damages caused to other boats during a boating accident.

What Is Not Covered by A Boat Policy that is Covered by a Yacht Policy?

Boat and yacht coverage do tend to have very similar policies that apply to many of the same things.

That being said, as mentioned, yacht insurance policies tend to be far more detailed than a general boat insurance policy. 

For example, animal damage does not feature on most boat insurance policies.

That being said, if you do plan on taking your yacht across an ocean, you could come across certain animals that could potentially damage your boat.

Moreover, yacht insurance tends to cover a broader and more varied area as the owner is likely to sail far and wide on a bigger ship.

However odd that may appear, it is actually very logical. Think about it – if you took a houseboat onto the great open sea, it is likely to come across many things that it will not be prepared for and scenarios it was not built to traverse!

Therefore, the insurance company will not be willing to cover the damages that the boat will receive in those areas.

However, yachts can go to farther and more varied locations, meaning it means a more detailed approach to its insurance policies.

How Much Does It Cost to Insure a Yacht vs a Boat on Average?

The amount that boat owners have to pay for marine insurance compared to yacht owners depends on many factors. Sadly, boat insurance is not as straightforward as you might think, and boat insurance prices can vary a lot depending on: 

• The insurance company: As is the case with home or car insurance, some insurance companies are a lot more expensive than others, which is why it might take some time to find the right one for you and your boat. It is best to get as many quotes as possible before making your choice. 
• The age of the vessel: Generally speaking, it will cost more to cover an older boat than it would to cost a new boat, whether it is a yacht or not, as more things are likely to go wrong and repairs are more likely to be needed. 
• Whether or not you are a first time boat owner: If you are about to get boating insurance for the first time, then like a new driver, you are bound to pay more, whether you have a boat or a yacht. 
• Whether it is a personal watercraft or a professional/commercial boat: Vessels used for professional purposes generally pay more than personal vessels. (we also provide commercial boat insurance)
• Your vessel’s current market value: The price of the insurance will depend on the agreed value of your ship.  
• Whether or not you already have a homeowner’s policy with the insurance company: this can sometimes make a difference and net you a discount, depending on the insurance carrier.

The list goes on! However, here’s a comparison of what you might expect comparing yacht insurance to boat coverage.

Very generally speaking, fully comprehensive insurance covers for a yacht costs around £380, whereas a fully comprehensive cover on a boat, such as a speedboat, for example, will cost around £340.

A houseboat will cost more, and dinghies even less.

IMPORTANT NOTE: The cost of your boat and yacht insurance will completely depend on the type of boat and other features on board. Costs can vary hugely due to the many variables and your personalised needs.

Summary

If you are considering getting boat or yacht insurance, then do ensure that your policy covers everything that you consider to be important for your ship.

The insurance may cost a lot, especially if you do plan on going far; however, there are ways of reducing the costs of your insurances, on both yacht and boat insurances. 

It is also important to remember that while boat insurance isn’t necessarily a legal requirement, if you do plan on taking your yacht into international waters, then you are very likely to need some form of boat insurance.

Personal property coverage alone won’t cut it!