While recreational boats are commonly written as part of ahomeowners package, the luxury yacht and mega-yacht insurancemarket involves a host of specialized coverages. Crew repatriation,haul-out provisions to cover the expense of removing a vessel fromthe path of a storm, salvage and wreck removal, and crew coveragefor compliance with the Jones Act are some of the key coveragessought by owners of larger vessels. Brokers should expect to alsonegotiate underwriting agreements to include agreed value,reduction in or disappearing deductibles, and expanded navigationallimits.

“With boats on inland waters, navigation isn't an issue. Withlarger yachts, navigation territory is an important part ofinsurance. You want to be sure that where you're going to use yourboat is reflected on the policy, so you don't end up buyinginsurance that restricts you to northern Atlantic navigation andyou wind up going south,” says Ed Charlebois, vice president ofpersonal insurance at Travelers.

Pollution coverage is also a big concern, says Kim Loos,managing assistant vice president in American Modern's St. LouisMarine Service Center. Especially on larger boats, she explains,most marinas are now requiring evidence or proof of pollutioncoverage.”

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