Is a Yacht Expensive to Insure?

Yes, insuring a yacht is usually more expensive than getting insurance for a smaller boat. What’s a yacht, though?
A yacht is bigger than a standard boat. The term "yacht" typically refers to a large, often luxurious vessel designed for pleasure cruising or racing. A yacht can be propelled by sails, engines, or both.
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How big is a yacht?
Yachts are typically considered to be at least 30 to 40 feet (about 10 to 12 metres) long, which is considered the minimum length for this kind of vessel.
A medium-sized yacht would range from 40 to 70 feet (12 to 21 metres). Large yachts are considered to be 70 to 100 feet (21 to about 30 metres) and superyachts are 100 to 200 feet (30 to 61 metres). Mega yachts are over 200 feet (61 metres).
How much does it cost to insure a yacht?
The cost to insure a 10 to 12 metre yacht in Canada can vary, but you can expect to pay at least $1,000 or more per year. Premiums may be higher for luxury yachts and for yachts with more powerful engines. So, it can be expensive to insure a yacht.
The rule of thumb is that insurance costs about 1.5% of the yacht’s value per year. If your 10-12 metre yacht is valued at $75,000 to $150,000, you can expect annual boat insurance premiums between $1,125 and $2,250.
What factors influence the cost of yacht insurance?
- Value of the yacht
- Age of the yacht
- Length
- Location
- Where is it stored
- Deductibles
- Coverage options
- Discounts
- Any past claims
- Your boating experience
Consult with an insurance broker: Western Financial Group is an insurance broker that can help you find the best boat insurance coverage at the right price for your yacht.
What does yacht insurance cover?
Most boat insurance providers in Canada offer customizable yacht insurance policies, allowing yacht owners to choose the coverage that best suit their needs and boating lifestyle.
Standard policies typically include basic insurance protections such as liability, physical damage, and personal effects, but you can add coverage options like emergency towing, navigational extensions, agreed value, replacement cost, and other options.
In Canada, yacht insurance typically covers a range of risks and liabilities.
Liability coverage
Liability insurance coverage for your yacht protects you if you are legally responsible for bodily injury, loss of life, or property damage to third parties resulting from the operation or ownership of your yacht. This type of insurance also helps you pay for your legal defense if you are sued.
Physical damage coverage
Physical damage insurance covers accidental loss or damage to the yacht itself, including the hull, engine(s), sails, and essential equipment in the case of a collision, grounding, fire, theft, and certain weather events.
Comprehensive coverage
Comprehensive yacht insurance includes coverage for theft, vandalism, fire, and natural disasters such as hurricanes and floods.
Collision coverage
Collision coverage is a type of boat insurance that helps pays for repairs after an accident. Some boat insurance companies treat collision coverage as a separate part of their policies, while others incorporate it within comprehensive boat insurance plans. Make sure that you have this coverage for your yacht and understand its limits.
Emergency towing and assistance
Emergency towing and assistance covers the cost of on-water towing, fuel delivery, and jump starts if your yacht breaks down or is disabled.
Wreckage removal and salvage
This type of boat insurance pays for the removal of your yacht from the water if it sinks or becomes stranded, as well as salvage operations.
Here’s the most important thing you need to know about insurance for your yacht
You need to understand what your yacht insurance covers and what it doesn’t. Understand your policy limits and deductibles. Coverage specifics and exclusions can vary. That means you need to review your options and select yacht insurance coverage that matches your needs. It’s a good idea to review your insurance needs when you renew your yacht insurance.
Where are you sailing with your yacht? Make sure to let your boat insurer know where you will be sailing and include it in your yacht insurance policy.
Where’s the yacht capital of Canada?
Toronto is considered to be the yacht capital of Canada. The Royal Canadian Yacht Club (RCYC) was founded in 1852 and is one of the country's oldest and largest yacht clubs. It has a strong role in promoting yachting in Canada.
British Columbia is a major hub for yachting but is not considered the yacht capital of Canada. B.C. has well-known yacht clubs like the Royal Victoria Yacht Club and Capital City Yacht Club in Victoria and Sidney. Its coastline, islands, and access to the Pacific Ocean make it a top destination for yachting enthusiasts.
Final thoughts
A yacht is a major investment that should be protected with customized boat insurance that protects you and gives you peace of mind.
5 FAQs about yachts and insurance
How does liability coverage differ between yacht and boat insurance?
Yacht insurance typically provides broader and more comprehensive liability coverage compared to a standard boat insurance policy. Yacht liability policies address the increased risks associated with larger and higher-value vessels.
Can yacht insurance be tailored for international travel?
Yes. Yacht insurance can be tailored for vessels that may travel in international waters and have a crew. Liability coverage would meet international maritime law requirements.
What are some specific liabilities that are covered for luxury yachts that aren’t covered on boats?
Crew and employee liability, kidnap, ransom and war risks, and high-value personal effects and art.
What are living conditions like on a yacht?
Most yachts have cabins similar to small hotel rooms, with private or shared bathrooms, a kitchen (galley), and communal spaces. Some even have washing machines.
Do you need a license or special training to operate a yacht?
In Canada, you generally need proof of competency, which is a pleasure craft operator card (PCOC), to operate any motorized yacht or pleasure craft, regardless of its size or engine power.
The PCOC is obtained by completing a Transport Canada-approved boating safety course and passing the test.