Now that you
have acquired your dream yacht and are all set to set out to sea, you need to
make sure that the insurance part of it is taken care of. Yacht insurance in Dubai is very
important to protect your expensive yacht, whether it is a 20-footer or 200-footer.
Before you get to float your boat on the high seas, think of the important
factors why yacht insurance can prove beneficial. Firstly, the UAE Marinas will
politely refuse permission to berth your yacht unless you have documentary
evidence for having insured the yacht for hull and liability, which could put
you in a tight spot.
1. Make sure the valuation is accurate
Before you can sign on the dotted line in the insurance papers, you need to have your yacht valued accurately. There is no denying the fact that you have paid through your nose for the splendid sea-worthy vessel, however, you need to come to an agreed value for your possession with the insurance company. While making sure that the figure is accurate and realistic, you can ensure that the yacht will be insured for what it is worth. In case you have acquired a used yacht, be informed that most of the policies in existence will cover yachts that are no more than five to seven years old.
Yacht insurance in Dubai is no different from yacht insurance worldwide, only that the rules are a bit more stringent. So, in case your yacht is older than seven years, or is quite large (the more footage more prestige), you need to seek the services of a marine surveyor, who will evaluate it accurately, and generate a survey report that will include a “out-of-water-condition” clause, no matter how old the yacht is. In fact, such survey reports should be taken at least once a year to make your vessel absolutely seaworthy, and maintain a reasonably high value as well, taking depreciation into consideration.
2. Take into account the wear and tear
After having paid millions for a classy yacht, you need to give enough thought for wear and tear. In addition to affecting the safety aspect while you are sailing on the high seas, wear and tear can tell upon the performance of the yacht as also its efficiency, and more importantly from the insurance point of view, the value. Make sure that maintenance checks and minor repairs are carried out regularly, and always entrust these types of jobs to experts who know yachts like the back of their hands. The hull needs to be kept spic and span at all times, with no barnacles or foreign particles present anywhere around. A clean hull ensures a smooth sail, and also impresses the insurers when they inspect the vessel before valuing it for insurance purposes.
3. Your sailing experience counts
How long have you been sailing on the seas? The answer to this question is very important when taking into account yacht insurance Dubai. If you haven’t had any sailing experience whatsoever, and are planning to go on your maiden sail, tough luck. It is better you set sail in a friend’s yacht or a hired vessel to gain some experience. Having more than 5 years’ sailing experience is to your advantage, looking at it from the insurance angle. An inexperienced sailor or a beginner going on the maiden voyage is not considered a safe bet by insurance companies. The problem is that they won’t refuse to insure your yacht; they will put a hefty premium, and make you pay more for your insurance. There’s hardly any way out here, so take care before you place your order for that mesmerizing yacht you saw in some magazine or vide.
4. It’s not just you and your yacht
When you are planning for signing up for yacht insurance in Dubai, don’t imagine that it will be sufficient if you and your yacht are covered for insurance. Yacht insurance should not only cover the vessel and its owner, it should also cover all the occupants (assistants, chef, cook, waiters, cleaners, helpers etc). Moreover, the coverage should include ample protection for the passengers, provision for seepage pollution apart from covering the hull, outboard motors and other pieces of machinery found on the vessel.
You need to cover yourself against third party legal liability, where you need to cover yourself against any bodily injuries, damage to third party vessels and other property therein. It is advisable to go for a high third party liability limit, just in case. While at it, include towing liability and include liability for water-skiing as well, should you get the urge to do so. As the policy is always issued in the name of the owner of the vessel, if you plan on renting it out or gifting a cruise to a friend, make sure you inform the insurer in writing so that the coverage is extended. In short, insure and be secure before setting sail on your dream cruise.
Ensure you review any potential policy in detail before you commit to purchase. By undertaking a thorough analysis of every possible scenario, you should be able to get the right cover for your vessel and enjoy peace of mind when sailing without worry.