Having a yacht in Dubai is one of the most desirable possessions! This can provide the owner with the chance to hire a yacht and enjoy the sea in the Arabian Gulf. Even so, before you decide to purchase a yacht in Dubai, there are a few things you need to keep in mind. The major thing is the yacht insurance.
When you’re considering buying a yacht, you need to understand the basics of yacht insurance. In this blog, we will know all the essential information about yachts before purchasing a yacht.
Why Yacht Insurance is Important in Dubai
Below are key reasons why yacht insurance is essential when you buy a yacht in Dubai:
- Asset Protection
Yachts are not a small sum of money and may cost hundreds of thousands or millions of dollars. In its absence, owners could afford the repair or replacement costs when damaged or stolen. Yacht insurance pays these costs, which means your asset is safeguarded.
- Liability Coverage
As it turns out, even yachts are prone to accidents, just like automobiles are regarding car accidents. From an accident with another boat, an injured passenger, or even damaged property, compensation for legal fees and damages may be made by yacht insurance. This is especially the case in commercial yacht use; it will also cover the passengers on the yacht.
- Natural Disaster Damage:
When it comes to hurricanes, storms, and other perils, this coverage will assist in fixing the damage that occurred to your yacht. Such out-of-place incidents can pose a significant threat to your yacht. Insurance does this, and so you do not have to be financially hit by such disasters: the cost of the repairs will be catered by insurance.
What Yacht Insurance Covers?
Before purchasing yacht insurance in Dubai, certain areas are commonly addressed for being insured. The specific coverage may vary based on the type of insurance plan you choose, but here are some common coverages included in most yacht insurance policies:
- Hull and Machinery Damage: This comprises compensation for any structural damage to your yacht (the hull) and any of the machinery, for example, the engine, where they have been damaged by an accident or even stolen.
- Third-Party Liability: The insurance will provide legal expense and compensation for the loss of property, chattel, or person where such benightedness was precipitated by your yacht.
- Personal Accident and Medical Bills: This offers compensation for any costs incurred going to the hospital if the owner, a passenger, or any other person involved in an accident gets hurt while using the yacht.
Types of Yacht Insurance:
Several types of yacht insurance will be available once you purchase your yacht in Dubai. The right policy will vary with the value of your yacht, the frequency, and the aspects of risks you wish to be insured. Below are common types of yacht insurance available:
- Third-Party Insurance
This is the worst form of insurance, as it does not provide compensation for damage to his property or for accidental death or disability. It is like third-party motor vehicle insurance and is usually compulsory to affirm. It will not compensate for losses to the owner’s yacht but is helpful for legal liability.
- Market Value Insurance
Market value is the form of yacht insurance that covers the current market value of the yacht when the loss or damage occurs. It looks at depreciation, which could mean that an amount of money is paid back, less than the cost at which the asset was procured.
- Comprehensive Insurance
Full yacht insurance is the most permissive in terms of coverage options. It comprehends third-party risks and perils arising from natural disasters, theft, accidents, and many others. This is ideal for yacht owners who wish to avail the most coverage for their yachts.
- Cost of Yacht Insurance
Various elements affect the cost of yacht insurance within Dubai: size and value, power, purpose (private or professional), captaincy, and cruising region.
Conclusion:
You must know about yacht insurance before purchasing a yacht in Dubai. Besides guaranteeing the safety of your precious piece of possession, it also ensures that you are insured for any accidental or theft misfortunes or if you are at fault in case of an unfortunate accident. When selecting the right coverage and taking into account the value of the yacht and what is planned to be done with it as well, a yachtsman can be sure that they are covered from all sides.
