Yacht insurance is understood not when the policy is signed but on the day of a claim. Three questions arrive that morning: what did the cover include, what was the deductible, and how was the value of the boat established. If those three were not discussed when the policy was taken out, there is nothing left to discuss when it matters.
This page exists so that you can read your own policy.
- Hull (H&M)the boat itself agreed value
- Liability (P&I)third-party damage
- Excessyour share on every claim
- Navigation limitsoutside them, no cover
1. Types of Cover
| Cover | What it covers | Watch |
|---|---|---|
| Hull and machinery | Physical damage to the boat, her machinery and equipment | Scope varies between policies; there is no standard product called "fully comprehensive". |
| Third-party liability | Damage to another boat, to property or to people | The limit matters. A collision inside a marina can produce a loss larger than the boat's value. |
| Personal accident / crew | People aboard | Arranged separately for charter use. |
| Towage and salvage | Recovery after breakdown or grounding | Check the limit and the geographic scope. |
| Wreck removal | The obligation to remove a wreck | Can arise by law; it is not unlimited. |
| Pollution liability | Fuel or oil spill | Limited in most policies; separate cover may be needed. |
2. Four Critical Clauses
1. Value: agreed or market?
Agreed value: the figure in the policy is what is paid on a total loss. Market value: what she was worth on the day, which can be lower than you expect. On classic and one-off boats, an agreed value is established with the support of a survey report.
2. Deductible
The amount you carry on every claim. A low deductible means a higher premium. The detail that catches people out: some policies apply separate deductibles by item, different rates for rigging, sails or an outboard.
3. Navigation limits
Which waters does the policy cover? Turkish coastal waters, the Greek islands, the whole Mediterranean, an Atlantic crossing, each is priced separately. This is the most common mistake on a delivery: the boat goes somewhere the policy does not reach. No delivery should start without written confirmation before departure.
4. Laid up ashore
Does cover continue while the boat is ashore? Storm, fire and toppling are risks on land too. Some policies also set conditions for how the boat is supported and secured over winter.
3. When an Insurer Asks for a Survey
- The boat is over a certain age (a 15-20 year threshold is common in practice)
- A policy is being written for the first time, or the insurer is changing
- An agreed value is requested
- Renewal follows significant damage
- The boat has been laid up unused for a long period
- Use is changing (private to commercial)
An insurance survey is a different scope from a pre-purchase survey: the focus is market value and insurability. Safety equipment, fire risk, the electrical installation, the fuel system, seacocks and the lightning/bonding arrangement come forward.
4. What to Do When Damage Happens
- Safety first: people, flooding, fire.
- Notify: tell the insurer within the period the policy states. Late notification makes cover arguable.
- Record: photograph the damage as it is, before cleaning or repairing anything.
- Do not let the loss grow: taking reasonable measures is your duty, pumping a flooding boat, arranging a tow.
- Adjuster: the insurer appoints one. You may also commission your own independent assessment, particularly on a large claim.
- Approval before repair: do not start work before the adjuster has seen it, or the figure becomes contested.
5. Typically Outside Cover
| Item | Why excluded |
|---|---|
| Wear and tear | Insurance answers a sudden and unforeseen event; deterioration over time is not damage |
| Osmosis and moisture deterioration | A slow process, treated as maintenance |
| Failure through neglect | For example corrosion because anodes were never renewed |
| Consequence of a known defect | Damage arising from a recorded but unrectified finding becomes contested |
| Cruising outside the terms | Beyond the navigation limits, or use that was not declared |
| Racing damage | Usually requires separate cover |
6. What Sets the Premium
Value and age, construction material, navigation area, use (private or charter), skipper experience, where she is berthed and the safety equipment aboard. The things that most concretely reduce a premium: a current survey report, class A findings rectified, a working fire and bilge alarm, and a maintained service record. The cost of a survey is often recovered through a few years of premium difference, but the real gain is having an unarguable file on the day of a claim.
Frequently Asked Questions
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💬 WhatsApp 📝 Written quote 📞 +90 501 5 SURVEYLast reviewed: September 2026. Maritime regulations and charges change; confirm with the relevant authority or your agent before acting. If you spot something out of date on this page, tell us.
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For insurance brokers, insurers and lenders we have set out the report format, delivery time and how we work on a separate page.
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