If you own your own personal watercraft, even though California does not require you to carry boat insurance, your banking institution will require coverage if you’ve taken out a loan in order to purchase the boat. Plus the marina where your vessel is moored might also require you to have insurance. You’re not likely to be able to get a loan without providing the bank with proof of insurance that covers the full value of the boat in the event of a loss.
The bank is listed as the lien holder on the policy so that if any loss payments are made they’ll be listed as a co-payee on any checks you receive. Most marinas require proof of liability insurance before they will accept a contract for a slip or a mooring and some will want to be listed as an additional insured on your California yacht insurance policy.
Most boat policies are “All Risk” policies
All Risk policies provide coverage for a broad array of concerns that could cause damage or a loss to your boat, including theft, vandalism, lightning, fire, grounding or sinking. In addition to this, the policy also covers lost or stolen belongings. You may want to look into options that will protect your personal items such as water sports equipment and fishing gear as well as provide you with towing coverage in the event of a breakdown.
Many insurers will give you the option on a policy that does not insure physical damage to your boat, and only provides a specified amount of coverage for your liability to others in the event of an accident or protection from accidents involving uninsured boaters.
Keep in mind that the more your yacht is worth, the more important having adequate insurance becomes so you can better protect yourself from a serious financial loss. If you have an umbrella policy, it will require your boat policy to have certain liability limits, and you should make sure that no coverage gap exists. Even what may be considered a minor collision may cause financial responsibilities that can only properly be covered with California yacht insurance from a reliable insurance carrier.