Yacht insurance written around where you cruise.
Agreed value on the hull, a cruising territory that matches your plans, coverage for a paid captain or crew, and a storm plan you can actually follow.
Quick answer Yacht insurance is written for larger boats, where the expensive surprises sit in the policy conditions rather than the price: agreed hull value, navigation territory, named operators, paid crew and hurricane storm plans.
- Agreed value insures a yacht's hull for a value set when the policy is written, so a total loss isn't reduced for depreciation.
- Most boat policies set a navigational territory you must stay inside to remain covered; going farther needs an endorsement from the insurer before you leave.
- If a yacht policy has a named operator endorsement, only the people listed may run the boat.
- A paid captain or crew should be disclosed to the insurer, because under the Jones Act a seaman injured in the course of employment can sue the employer.
- Damage that results from not following a yacht policy's hurricane or named storm plan is very likely to be denied.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched
The policy terms matter more than the premium
On a larger boat the expensive surprises sit in the conditions, not the price. Most boat policies set a navigational territory, and you have to stay inside it to remain covered; taking the boat farther needs an endorsement from the insurer before you leave. Some yacht policies also limit who may run the boat to operators named on the policy.
Paid crew and storm season add two more layers. A seaman hurt on the job can sue the employer under federal maritime law, so a hired captain or deckhand has to be disclosed and covered. In hurricane country, a policy may carry a storm plan endorsement that names the yard where the boat will be hauled, and straying from it can cost you the claim. I read those terms with you before anything is bound.
- Agreed valueThe hull is insured for a value set when the policy is written, so a total loss isn't reduced for depreciation.
- Navigation territoryThe waters and dates you're covered in, stated on the declarations page; going beyond them needs an endorsement.
- Named operatorsIf the policy has a named operator endorsement, only the listed people may run the boat.
- CrewFederal law lets an injured seaman bring a civil action against the employer, so paid crew belong on the policy.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- The yacht: year, builder, model, length, hull material and HIN.
- Value: purchase price and a recent survey, if you have one.
- Cruising plans: home port, the waters you use and any longer passages.
- Operators: who runs the boat, their experience and any captain's license.
- Crew: paid captain or crew, full-time or by the trip.
- Storm season: where the boat goes when a named storm threatens.
Coast Guard documentation and state numbers
Many yachts carry a federal Certificate of Documentation. Under 46 CFR 67.5, any vessel of at least five net tons wholly owned by a citizen or citizens of the United States is eligible for documentation, and that includes vessels used exclusively for recreational purposes.
- Renewal is on a clock. Under 46 CFR 67.163, endorsements are valid for 1 year, except recreational endorsements, which are valid for 1, 2, 3, 4 or 5 years. A certificate with both a recreational and a commercial endorsement is valid for only 1 year. Renewal is filed on form CG-1280 with the Director, National Vessel Documentation Center, and it may be denied if the owner is the subject of an outstanding civil penalty assessed by the Coast Guard.
- The lender cares. Under 46 U.S.C. 31322(a), one element of a preferred mortgage is that it covers a documented vessel or a vessel for which an application for documentation is filed. If your loan is a preferred ship mortgage, I name the lender on the policy exactly as the loan papers direct.
- State numbers are a separate rule. California Vehicle Code 9850 requires every undocumented vessel using California waters to be currently numbered; numbering and registration rules vary by state. For a documented yacht I put the official number from the certificate on the application, along with any state registration the yacht also carries.
Send me the current certificate with the quote request. Underwriters match the owner name, hull identification number and official number against it; a yacht documented to an LLC but insured in a personal name is easier to fix before binding. A tender or personal watercraft that carries state numbers can be quoted on a boat policy.
Before you charter the yacht out
Charter use can change how federal law classifies a yacht. The definitions are in 46 U.S.C. 2101:
- Passenger for hire means a passenger for whom consideration is contributed as a condition of carriage, whether directly or indirectly flowing to the owner, charterer, operator, agent or any other person having an interest in the vessel. An individual charterer is not counted as a passenger.
- Uninspected passenger vessel of less than 100 gross tons means one carrying not more than 6 passengers, including at least one passenger for hire, or one chartered with the crew provided or specified by the owner or the owner's representative and carrying not more than 6 passengers. This is the "six-pack."
- Small passenger vessel of less than 100 gross tons includes one carrying more than 6 passengers including at least one for hire, one chartered with owner-provided or owner-specified crew carrying more than 6, and one chartered with no crew provided or specified by the owner carrying more than 12.
Under 46 U.S.C. 8903, a self-propelled uninspected passenger vessel must be operated by an individual the Coast Guard has credentialed to operate that type of vessel. A recreational vessel, by definition, includes one chartered to another for the latter's pleasure, so the classification turns on who provides or specifies the crew, how many passengers are aboard and whether any pay, not on the word "charter."
Before any charter use I ask who picks the captain and crew, the most guests aboard at once, who collects the money, and whether a charter manager is involved. A private-use policy is written on the use you described, so tell me before the first paid trip and the right form, and if needed a commercial umbrella, can be quoted.
Yacht insurance, answered
What's the difference between agreed value and actual cash value?
Agreed value insures the yacht for the value set when the policy is written and doesn't take depreciation off a total loss, though some partial losses can still be depreciated. Actual cash value costs less up front but pays after depreciation.
What happens if I take the boat outside my navigation limits?
You have to stay inside the policy's navigational territory to remain covered. If you're planning a passage beyond it, ask for an endorsement before you go.
Can a friend take the boat out?
Usually anyone you give permission is covered, unless the policy has a named operator endorsement. Then only listed operators may run the boat.
Do I need coverage for a paid captain or crew?
Yes, tell the insurer. Under the Jones Act a seaman injured in the course of employment can sue the employer, and that exposure needs to be covered on the yacht policy.
What is a hurricane or named storm plan?
Often it's an endorsement where you promise to take specific steps to protect the boat when a storm threatens, and most name the yard where it will be hauled. Damage that results from not following the plan is very likely to be denied.
How early should the boat move before a storm?
Florida Sea Grant guidance says vessels need to be moved 48 to 72 hours before a storm is predicted to arrive, and recommends a trial run before the season so you know how long it takes.
Do I have to document my yacht with the Coast Guard?
Under 46 CFR 67.7, a Certificate of Documentation with the appropriate endorsement is required for a vessel of at least five net tons that engages in the fisheries on U.S. navigable waters or in the Exclusive Economic Zone, or in coastwise trade, unless exempt under 46 CFR 67.9(c). Recreational use is not one of the activities 67.7 lists.
Do you offer yacht insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- Maryland Insurance Administration: boats and personal watercraft
- 46 U.S.C. 30104: personal injury to or death of seamen
- Marlin: understanding hurricane insurance plans
- University of Florida IFAS: boat preparation for hurricanes
- 46 U.S.C. 30523, General limit of liability (Cornell LII)
- 46 U.S.C. 30529, Action by owner for limitation (Cornell LII)
- 46 CFR 67.5, Eligibility of vessels for documentation (Cornell LII)
- 46 CFR 67.7, Vessels requiring documentation (Cornell LII)
- 46 CFR 67.163, Validity and renewal of endorsements (Cornell LII)
- 46 U.S.C. 31322, Preferred mortgages (Cornell LII)
- 46 U.S.C. 2101, Definitions (Cornell LII)
- 46 U.S.C. 8903, Uninspected passenger vessels (Cornell LII)
- California Vehicle Code 9850, Vessel numbering
- California Revenue and Taxation Code 6248, Out-of-state purchase presumption
Send me the boat and the plans. I'll shop it.
The builder, length, value and where you cruise are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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