American Modern Insurance Group, a national specialty insurance carrier, has enhanced its yacht program in California and Washington, expanding coverage features in the base policy, repositioning endorsements as a way to increase limits, and lowering rates for experienced yacht owners.
The enhanced program, which takes effect in California immediately and in Washington on May 12, will roll up towing, emergency assistance and other coverage into the base policy with a more competitive rating system that relies more heavily on the ownership experience of the yacht owner.
Some of the coverages that come standard in the American Modern base policy for yachts include:
- Consequential Damage: If a yacht is disabled by a cause not covered by insurance and suffers other damage that is normally covered, the initial cause does not void the coverage. For example, if mechanical failure leads to an accident that causes hull damage, the mechanical failure does not void the hull coverage, regardless of the vessel’s age or value. This is a key feature for older inventory of West Coast yachts.
- Equipment parts replacement: When there is a partial loss, depreciation is not factored into a settlement for parts less than 10 years old. This feature, also key for older boats, prevents erosion of the owner’s deductible.
- Broad navigational freedom: Yacht owners have very few limitations in where they take their vessels. They are covered when they cruise Mexico’s Pacific Coast as far south as Rio Santo Tomas, Baja.
The enhanced yacht program also features new “Yacht Plus” endorsement limits:
- Emergency assistance: Reimbursement may be available up to $2,500 for emergency assistance and towing, and up to $10,000 for search and rescue.
- Personal effects and fishing gear: Limits are offered up to $10,000 for personal effects and fishing gear.
- Longshore and Harbor Workers’ Compensation Act: Covers requirements to provide financially for a paid, part-time captain and crew injured while working on, servicing or supplying a vessel.
American Modern Insurance Group is licensed in all 50 states and is a subsidiary of Munich Re.
Was this article valuable?
Here are more articles you may enjoy.