Common Myths About Your Vessel’s Insurance

Posted February 6 2020

recreational yacht insuranceWe often hear the question, “is all boat insurance the same?” The short answer is NO. However, the long answer needs to be addressed so that you know what you’re getting into when it’s time to insure your vessel.

Recreational marine insurance is unlike any other type of insurance. It has often been viewed as the wild wild west of insurance. That sounds fun and alarming! But the reason being is that there are so many factors when it comes to actually covering your vessel, that carriers often change coverage limits. It can be to the point where one carrier’s insurance looks nothing like a different carrier’s insurance. Hence, the topic of this article, to address some of the misinformation going around about recreational marine insurance.

All Marine Insurance is the Same

Saying all marine insurance is the same is like saying all cars are the same. Everyone knows, no 2 cars are alike, you can’t compare a Toyota Corolla with a Cadillac Escalade. That being said, the same applies when it comes to your vessel’s insurance. Buying boat insurance based on reviewing a quote is like buying a car based on the window sticker, without knowing the manufacturer or model of the vehicle. There are a plethora of policies out there, but each one comes with fine print. Typically, the cheaper the policy, the more lapses in cover you will experience, hopefully not the hard way. It’s important to read and review all policy paperwork before selecting a plan.

There are Strict Regulations

While many people believe insurance companies must follow a strict set of guidelines in order to offer policies, that doesn’t apply to every type of insurance. Marine insurance operates unlike most other types of insurance, with carriers being able to almost whatever they want when it comes to amounts, limits, and coverages. Something you may see as a basic coverage that should be included in all policies no matter what, may not be available with another carrier, or even a different policy within the same carrier.

Location Doesn’t Matter

When applying for your vessel’s insurance, you will be required to give more information than just the year and brand of your boat. Insurers require to know the location of your boat as well as different locations require different types of coverage. For example, if you are spending the majority of your time in the Caribbean during hurricane season, that will need to be accounted for.

Having proper insurance is important in every aspect of life. Whether you are at sea needing international coverage, looking for proper life insurance coverage, going on a vacation, etc. MHG is your specialized broker. Our insurance specialists have the knowledge and experience to find the policy that works best for you. If you are interested in purchasing, or have any questions about marine crew insurance, travel insurance, U.S. life and health, expatriate insurance, or property and casualty, please contact us at +1 954 828 1819 or +44 (0) 1624 678668 or visit us online at