Florida is one of the world’s great yachting destinations, from the Intracoastal Waterway to the Keys, the Bahamas, and beyond. It is also the heart of hurricane country. For yacht owners, that combination makes insurance both essential and nuanced. The right policy reflects not just the value of the vessel, but how and where you use it, who operates it, and how you will protect it when a storm approaches.
Agreed Value Hull Coverage
Most yacht policies insure the hull on an agreed value basis, meaning the vessel’s value is set when the policy is written and paid in full after a total loss. Machinery, tenders, personal property aboard, and electronics should all be reviewed to make sure they are included at appropriate values. We recommend updating the agreed value whenever the vessel is refit, upgraded, or the market shifts.
Named Storm Coverage and Hurricane Plans
Named storm coverage is one of the most important, and most carefully underwritten, parts of a Florida yacht policy. Common requirements include:
- A written hurricane plan describing exactly where the vessel will go and how it will be secured when a named storm threatens.
- Haul-out or relocation. Many policies require the yacht to be hauled out, placed on a lift, or moved to a hurricane-rated facility after a watch or warning is issued. Failing to follow the plan can jeopardize coverage.
- Separate named storm deductibles, often a percentage of the hull value and higher than the standard deductible.
- Hurricane haul-out reimbursement, available on some policies, which helps pay the cost of hauling and storing the vessel ahead of a storm.
Reserved haul-out space fills quickly when a storm is forecast. We encourage clients to confirm arrangements with their marina or yard at the start of every season and to share the plan with their captain.
Navigation Limits and Hurricane Season Warranties
Every yacht policy defines where the vessel may navigate. Some policies require the yacht to stay north of a certain latitude, or outside a defined hurricane box, during hurricane season, or they apply higher deductibles inside it. If you plan to cruise the Bahamas, the Caribbean, or beyond, we confirm that your navigation limits and seasonal warranties match your itinerary before you depart.
Liability: Protection and Indemnity
Protection and indemnity coverage responds to bodily injury and property damage you cause to others, including wreck removal, which can be very expensive and may be legally required after a loss. Pollution liability is another critical component. Given the potential severity of marine accidents, we recommend high liability limits and coordination with a personal umbrella policy that includes watercraft.
Captain and Crew Coverage
If you employ a captain or crew, their injuries are typically governed by maritime law, including the Jones Act, rather than state workers’ compensation. Crew coverage within the yacht policy, or a separate maritime employers liability policy, protects you against these claims. Named operator requirements, captain qualifications, and charter use should all be clearly addressed.
Charter Use
If you charter your yacht to others, even occasionally, your policy must be written for commercial charter use. Personal yacht policies generally exclude charter activity, and an uninsured charter claim could be devastating.
Tenders, Toys, and Personal Property
Tenders, personal watercraft, dive equipment, fishing gear, and personal effects aboard should be listed and valued. Confirm whether they are covered when used away from the mother ship.
Surveys and Condition Reports
Underwriters rely on marine surveys to understand a vessel’s condition, value, and maintenance. Most yacht insurers require a current survey for older vessels or at policy inception, and they may require recommendations to be completed within a set time. Keeping up with survey recommendations, maintenance records, and haul-out inspections not only supports your coverage but also helps preserve the yacht’s value. We help clients schedule surveys and present them to underwriters in the best possible light.
Owning Through an LLC or Foreign Registration
Many larger yachts are owned through limited liability companies, and some are registered under foreign flags. These structures can provide legal and tax advantages, but they must be reflected accurately on the policy. The named insured, additional insureds, loss payees, and lenders should all match ownership documents. When vessels cruise internationally, certificates of insurance may be required to enter certain ports or marinas, and we prepare these in advance.
A Plan for Every Season
Our yacht clients receive a pre-season review of their hurricane plan, navigation limits, and coverage, and a direct line to their advisor when a storm approaches. When it is time to repair or replace a vessel, we help coordinate surveys and claims so you can get back on the water. To learn more, visit our yacht insurance page or request a yacht quote.
