28. Yacht Insurance Explained: Are You Actually Covered?

Most yacht owners have insurance. But how many really know what their policy covers, where that cover applies, or what will happen when something actually goes wrong? In this episode of the Berthon Podcast, Sophie Kemp is joined by Marcel Herrera, Chief Executive Officer of CompareYachtInsurance.com, for a practical look at yacht and boat insurance, without getting lost in the jargon. Marcel brings an unusual perspective to the subject. Before building his career in marine insurance, working across Lloyd’s brokers, MGAs and syndicates, he was a professional yacht racer competing internationally in both inshore and offshore events. That combination of sailing and insurance experience makes this a conversation firmly centred on the realities facing yacht owners.  They begin with a deceptively simple question: what does it actually mean when somebody says their yacht is “fully insured”? Marcel explains the difference between Hull & Machinery, third-party liability and P&I, as well as agreed value, exclusions and the importance of looking beyond the premium when comparing policies. They also discuss why yacht insurance is very different from car insurance and why two apparently similar policies may provide very different protection.  The conversation then moves into some of the situations owners may not think about until they become important. What happens if you retrofit lithium batteries? Can you lend your yacht to a friend? Does your insurer need to know that you're racing or sailing single-handed? What happens if you leave the yacht on a swinging mooring throughout the winter? And when should modifications, maintenance or changes in value be reported?  For owners planning to cruise further afield, Sophie and Marcel explore how dramatically the insurance picture can change once you leave familiar waters. A policy suitable for cruising the UK and northern Europe may not necessarily follow you across the Atlantic, into the Caribbean or towards more adventurous destinations such as Patagonia, Svalbard or Antarctica. Marcel explains why cruising grounds, repair facilities, hurricane exposure, licensing and even geopolitical events can influence whether cover is available and what it costs.  They also look at the owner themselves. Does an RYA qualification make a difference? Is experience more important than certificates? Can you buy a yacht that is simply too large for your experience? And could an insurer require a professional skipper until you've built up enough time aboard?  Then comes the part nobody wants to experience: making a claim. From stolen tenders and marina collisions to groundings, fires and total losses, Marcel explains what happens after the phone call to the insurer, who surveyors and loss adjusters are, how insurers establish the cause and cost of a loss, and why owners should “act as if uninsured” when dealing with an emergency by doing what is necessary to protect people and the yacht rather than waiting for permission.  The discussion also covers chartering, surveys, ageing yachts, standing rigging, saildrive seals, VAT and flag-state complications, before looking towards the future. Could yacht insurance eventually resemble modern car insurance, with onboard monitoring showing battery voltage, bilge activity, shore power and how the yacht is actually being used? Some insurers are already moving in that direction.   Whether you're buying your first yacht, preparing for an Atlantic crossing, moving up to a larger boat or simply renewing the policy you've had for years, this episode asks one question worth answering before you cast off: Are you actually covered? CompareYachtInsurance.com Independent comparison service helping yacht & boat owners compare insurance from multiple insurers. Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.