Buying your first yacht is an exciting event, but there are plenty of factors that go into making the right decision. From finding the right vessel for your needs to getting yacht insurance that provides you with coverage for any unforeseen events, there are plenty of considerations to make before making your big purchase.

To help guide you towards the best decision, here are some questions to keep in mind before you venture into yacht ownership. Keep all of these factors in mind and you’ll be well on your way to making the best decision possible.

8 Questions to Ask When Buying Your First Yacht

1. Will Anyone Else Be Using the Yacht with Me?

Before buying yourself a yacht, consider what your plans for using the vessel will be. You’ll want to have space and accommodations for whoever you bring out with you. Buying a suitable vessel to provide ample space for everyone on board will be an important consideration to make.

This consideration will also factor into the insurance coverage that you need. If you plan on letting somebody else pilot the yacht, they will need to be included in your insurance policy accordingly. You may also consider getting liability coverage to cover expenses if anybody is injured while on board the vessel in a slip-and-fall or other such accidents that may occur during operation.

2. What Risk Does the Boat Face from Natural Disaster?

Every year, the frequency and intensity of tropical storms and hurricanes seems to steadily increase. These severe storms leave millions of dollars in damage in their wake, threatening the safety of coastal communities that they pass over. Boat owners are among those vulnerable to the tremendous damage the winds, rains, and ocean swells these storms bring can cause.

Protect yourself from this potential danger by including natural disaster coverage in the yacht insurance policy you cover your vessel with. Keep in mind where the ship will be stored when you aren’t sailing it as well. If you plan on keeping the yacht in a location that is prone to hurricanes or other extreme weather events, getting this coverage could save you from costly expenses in the future.

3. How Will You Cover Repairs in the Worst-Case Scenario?

They say that you should always prepare for the unexpected, and that old saying is doubly true for boat ownership. Any number of events can lead to damage to your boat, in some cases leading to a total loss of the vessel. In such cases, most yacht owners don’t have the assets to cover the substantial amounts of money needed to get the necessary repairs.

Having the right insurance policy on your side can provide some critical assistance in these unforeseen events. You can get coverage that will help you out with the necessary repairs or reimburse you in case the vessel is a complete loss. You can also get additional coverage that can take care of the costs of any salvage operation if the wreckage of the yacht need to be recovered and cleaned up following an accident.

4. How Will You Take Care of Clean-Up in the Event of a Spill?

Accidents at sea can lead to damage that extends beyond your yacht itself. Damage to your vessel’s fuel tank or other components can cause harmful chemicals to leak out from the ship and into the waters you’re sailing in. These chemicals can cause extensive damage to the plants and animals of the ocean’s ecosystem, requiring thorough cleaning efforts to undo the harm that was caused.

If you don’t have proper insurance coverage, you may be liable for covering the expenses of such a clean-up project. Fuel spill coverage can provide some vital assistance in such circumstances. Your insurance provider can help you to cover the costs of labor and materials needed in the clean-up efforts.

5. How Far Out Do You Plan on Sailing?

Take a moment to think about your plans for sailing before you buy your first yacht. Do you plan on staying in close to the coastline, or will you be venturing out into further waters? You’ll need the necessary knowledge and equipment if you plan on doing some more serious sailing in deeper waters.

In addition, these plans may affect your insurance coverage. Some insurance policies may place certain restrictions on the deep-sea boating that you plan on doing. For example, some policies give you a coverage area that extends to waters within a certain distance from the coast. If you incur damages outside of this specified coverage area, your insurance may not apply to any expenses that you incur.

6. Is There Adequate Safety Equipment on Board?

Having the right equipment to handle any emergency situation is absolutely vital for anybody planning on heading out on the water. You have a responsibility to ensure that you have the safety gear needed to provide for everybody who comes out on your yacht with you. Checking regularly to make sure that this gear has the necessary upkeep to be in good working order is another essential step.

Your yacht insurance policy can cover emergency equipment and other gear on board your boat. That includes personal effects brought on the yacht with you, things such as fishing gear, and any other equipment you’re sailing with. Including this gear in your insurance policy can help you be reimbursed if this equipment is somehow lost or damaged during your time out sailing.

7. Should You Get Coverage for an Agreed Amount or the Actual Cash Value?

There are several options for your insurance policy that allows you to get the coverage that works best for you. One important decision you’ll make is whether to go for a plan that gives you coverage for an agreed-upon amount or the actual cash value of your vessel. This distinction will determine what compensation you get in the event of your yacht being declared a total loss from damages it suffers.

As the name suggests, agreed amount coverage will pay you out a previously-determined value on your yacht in the event of a total loss. Cash value, on the other hand, will take into account depreciation of value, wear and tear, and other factors that effect the worth of your yacht. Your specific circumstances will determine which type of policy best suits your needs, so be sure to do your research before picking a coverage plan.

8. How Can I Get the Best Price on Yacht Insurance?

While it’s important to get the coverage you need, nobody wants to pay more than they need to in order to get insurance coverage for their boat. That’s why it’s important to find the best deal possible. Finding a reputable provider that offers affordable but comprehensive coverage is absolutely key. You can also save by bundling your boat insurance policy with home, auto, or business policies depending on what other insurance coverage you need.

Get all the insurance coverage you need from an independent, locally-owned provider that you can trust. We’ll show you the advantage of working locally instead of trusting the same-old companies that offer the same-old rates. Contact iInsure today and ask for a quote for your insurance needs!