Yacht Insurance in New Hampshire and New England

MarineYachtNH Seacoast

By Jon Merwin, Founder and CEO

A 34-foot express cruiser on a Rye Harbor mooring, a sailboat in a Kittery slip, and a sportfisher that spends August on the Isles of Shoals all need more than a basic boat policy. Yacht insurance is built for larger vessels and longer seasons: how the hull is valued, where you can cruise, what happens in the off-season, and how much liability you carry for guests, crew and other boats. This page walks through how we put that together for New Hampshire Seacoast and New England boaters. For smaller boats, start with our boat and watercraft insurance page.

As an independent agency we compare carriers for you. Chubb is our yacht carrier. For smaller and mid-size boats we compare Progressive, Liberty Mutual, American Modern, Foremost Specialty and Hanover, each up to its own length and value limits. We look at hull value, how you use the boat, where it is kept and stored, and your experience, and tell you plainly which policy fits.

What does yacht insurance cover?

Yacht policies are usually written in parts. The names differ by carrier, but most include:

• Hull (physical damage): the vessel, machinery, permanently attached equipment and often the tender, for losses like collision, sinking, fire, theft, storm and grounding.
• Protection and indemnity (P&I): liability if you injure someone or damage another boat, a dock or other property, including your legal defense.
• Medical payments: for people injured aboard or while boarding, regardless of fault.
• Uninsured boater: injuries to you and your guests caused by another boater without enough coverage.
• Personal effects and fishing gear: belongings aboard that are not part of the boat.
• Towing and assistance: on-water towing, jump starts, fuel or parts delivery and labor at the breakdown site, usually included up to a set limit.
• Wreck removal and fuel spill liability: costs to remove a wreck when required, and cleanup and liability for fuel or oil discharged from your vessel.
• Storm preparation: some policies help pay to haul out or move the boat to safety when a named storm threatens.

Which carrier fits which boat?

There is no single size where a boat stops being a boat and becomes a yacht. Each carrier sets its own limits on length and value, and those limits can depend on the boat’s age and whether it is kept on the coast or on a lake. In general:

• Small boats, lake boats and personal watercraft: runabouts, bass boats, pontoons, ski and wake boats and PWCs usually fit a standard boat program from Progressive, Liberty Mutual, American Modern, Foremost Specialty or Hanover.
• Mid-size cruisers and sailboats: several of those standard programs also take larger cruisers and sailboats, up to their own length and value limits. Older boats kept on the coast can face tighter limits and a survey.
• Yachts: when a boat is larger or more valuable than the standard programs allow, has a paid captain or crew, or cruises beyond the usual offshore limits, we place it with Chubb.
• Special cases: high-performance boats, wooden classics and houseboats are restricted or excluded by some standard programs. Tell us up front so we go to a carrier that accepts them.

Agreed value or actual cash value?

How the hull is valued is the first thing we look at. With agreed value, you and the insurer settle the hull value when the policy is written, and a covered total loss pays that amount. Some policies waive the deductible on a total loss. With actual cash value, a total loss pays what the boat is worth at the time of the loss, after depreciation. Agreed value is standard on yacht policies. Some entry-level boat packages, and some personal watercraft coverage, pay actual cash value, and some policies pay replacement cost on a total loss of a boat only a few years old.

Carriers often ask for a marine survey before writing an older or larger boat, and the survey supports the agreed value. Smaller and newer boats often need no survey at all.

Partial losses are where policies really differ. Some pay full replacement cost for most repairs. Others apply depreciation to canvas, sails, upholstery, outboards, electronics, tenders or trailers. If you have just repowered or added new electronics, tell us, so the agreed value and the depreciation terms reflect what you have actually put into the boat.

Wear and tear, breakdown and ensuing loss

Standard boat and yacht policies usually exclude wear and tear, gradual deterioration and mechanical breakdown. Some enhanced policies go further: they cover mechanical and electrical breakdown, or they cover the resulting damage when a worn part leads to a sinking, fire, collision or stranding. For example, a snapped throttle cable may not be covered, but the hull damage from the collision it caused can be. We point out which policies work this way.

Seacoast conditions that shape a yacht policy

The Piscataqua River and Portsmouth Harbor

NOAA describes the Piscataqua as having one of the swiftest and most difficult currents in the country. The incoming tide reverses the river’s normal flow, and large commercial vessels time their transits for slack water. For recreational boaters, that current matters around the bridges, the moorings off New Castle and Kittery Point, and the narrow approaches into Little Harbor. New Hampshire law requires headway speed under all bridges and within 150 feet of docks, mooring fields, swimmers and other boats, with an exception for the federal deepwater channel of the Piscataqua between buoy R2 at Wood Island and R12 opposite the Sprague Terminal.

Underwriters ask where the boat is kept because moorings, marina slips and storage yards carry different risks. A boat on an exposed mooring is underwritten differently than one in a protected slip or on the hard for the winter.

Where Seacoast boats are kept

Our Seacoast boaters keep yachts at marinas and yacht yards around Portsmouth Harbor and the Piscataqua, on both sides of the river: in New Castle and Portsmouth, along the Kittery shore, upriver toward Newington and Great Bay, and on state-managed moorings in Rye Harbor and Hampton Harbor, which are run by the New Hampshire Port Authority. Each storage contract has its own insurance requirements. We read them with you. Local pages: Portsmouth, New Castle, Rye, Hampton, Newington and Kittery.

Nor’easters and hurricane season

The Atlantic hurricane season officially runs from June 1 to November 30, and our coast also takes winter Nor’easters that can bring storm surge and damaging wind well after most boats are hauled. Some yacht policies carry a named storm deductible, and some carriers ask coastal boaters for a written hurricane plan: where the boat will go, who will move it and how it will be secured. Some policies also help pay to haul out or relocate a boat when a named storm watch or warning is posted. We compare those terms side by side.

Navigation limits: where you can take the boat

Every boat and yacht policy names a navigation area. Standard boat policies usually cover U.S. and Canadian inland and coastal waters out to a set distance offshore, and that distance differs a lot from one carrier to the next. Some let you extend it. Yacht policies can reach the Bahamas, the Caribbean or farther. If you run offshore to the Isles of Shoals or the canyons, head east to Penobscot Bay, or take the boat south for the winter, the policy has to allow it. Going outside the named area can limit or void coverage for that trip.

• Tell us about any planned trips outside New England before you leave.
• Ask whether the policy covers transport over land, such as trucking the boat to another state, and how far.
• If the boat will be chartered, even occasionally, tell us. Many boat policies exclude charter use, and some yacht policies allow occasional charter by endorsement.

Lay-up periods, haul-out and winter storage

Carriers handle winter differently. Some offer a lay-up option, where you agree the boat will be out of commission for set months. Others write a full-year policy with no lay-up period. Either way, coverage usually continues while the boat is hauled, blocked or stored, for risks like fire, theft and windstorm. If your policy has a lay-up period, taking the boat out during it may need the insurer’s approval.

• Haul-out and launch: ask whether damage while the yard is lifting, blocking or moving the boat is covered, and how your policy works with the yard’s own coverage.
• Winterizing: freeze damage from an engine or plumbing system that was not winterized is often excluded. Keep the yard’s winterization records.
• Wet storage: if the boat stays in the water over the winter, confirm the policy allows it and whether bubblers or de-icers are required.
• Where it is stored: some carriers require a secure location, such as a marina, a yard, your own property or a locked building, and will not cover a boat left in an open, unsecured lot.
• Shrink-wrap and covers: snow load can damage a boat on stands. Ask how your policy treats it.

Liability: guests, crew, towing and fuel spills

Hull coverage protects the boat. Liability is where a serious claim can grow. Protection and indemnity covers injuries to guests and others, damage to other vessels, docks and moorings, and your legal defense. Higher limits are common for larger yachts, and many owners add an umbrella.

• Crew: if you hire a paid captain or crew, even for a delivery or a season, their injuries may fall under federal maritime law such as the Jones Act rather than your guest coverage. Some yacht policies include crew liability and others add it by endorsement. Tell us about anyone you pay to run or work on the boat.
• Towing and assistance: most boat and yacht policies include on-water towing up to a set limit, and some let you raise it. Some boaters also carry a membership with a commercial towing service. We make sure the two fit together.
• Fuel and oil spills: under the federal Oil Pollution Act of 1990, a vessel owner can be responsible for cleanup and damages from a discharge. The policies we write include fuel spill liability, and we compare the limits.
• Wreck removal: if a sunk or stranded boat has to be raised or removed, the costs can be significant. Many policies cover it as part of liability or as a separate limit.

For larger limits, see our umbrella insurance page. An umbrella can sit over yacht liability if the umbrella insurer’s rules allow the boat and the yacht carries the required underlying limit.

New Hampshire rules every boat owner should know

• Registration: boats operated on New Hampshire waters, including tidal and coastal waters, must be registered with the NH Division of Motor Vehicles and display the bow number and current decal unless exempt (RSA 270-E:3). Registrations expire December 31.
• Boating education: anyone operating a motorboat over 25 horsepower on New Hampshire waters must have a boating education certificate (RSA 270-D:10), and must carry it while operating (RSA 270-D:11).
• Headway speed: required under all bridges and within 150 feet of rafts, swimmers, swimming areas, shore, docks, mooring fields and other vessels (RSA 270-D:2), with the Piscataqua deepwater channel exception noted above.
• Operating under the influence: it is illegal to operate a boat while impaired or with an alcohol concentration of 0.08 or more, or 0.02 or more under age 21 (RSA 265-A:2). A conviction brings a one-year ban on operating a boat in New Hampshire and is reported to your driving record (RSA 265-A:19).
• Insurance: New Hampshire does not require boat insurance by law. Marinas, yacht clubs and lenders commonly do.

Coordinating your yacht with your home, auto and umbrella

Many Seacoast yacht owners also own a waterfront home and valuable cars. When we write the boat, we look at the whole picture: liability limits that line up under one umbrella, a coastal home policy with the right wind and flood terms, flood insurance, and high-value auto coverage for the cars in the garage. For larger homes, see high-value home insurance in New Hampshire and homeowners insurance.

Frequently asked questions

What is the difference between boat insurance and yacht insurance?

Yacht insurance is a marine policy written for larger, higher-value vessels. There is no single length where a boat becomes a yacht: each carrier draws its own line, and some standard boat programs take boats well past 30 feet. A yacht policy usually separates hull coverage from protection and indemnity (P&I) liability, names a navigation area, and can add paid crew, wider cruising areas and higher personal property limits. Smaller and mid-size boats are usually written on a boat or watercraft policy.

Should my yacht be insured at agreed value or actual cash value?

Agreed value means you and the insurer settle on the hull value when the policy is written, and a covered total loss pays that amount minus any deductible. Actual cash value pays market value at the time of the loss, after depreciation. Agreed value is standard on most yacht policies and on many boat policies, while some entry-level boat packages and some personal watercraft coverage pay actual cash value. Some policies pay replacement cost on a total loss of a boat only a few years old. Carriers often require a marine survey for older or larger boats. Partial losses are settled differently, so we review how each policy handles depreciation on things like canvas, engines and electronics.

What is a navigation limit?

It is the cruising area named in your policy. Boat policies usually cover U.S. and Canadian lakes, rivers and coastal waters out to a set distance offshore, and that distance varies a lot by carrier. Yacht policies can extend to the Bahamas, the Caribbean or farther. If you take the boat outside that area without an endorsement, coverage can be limited or excluded. If you plan to run down east to Maine, to the Cape and Islands or farther south, tell us before you go.

What is a lay-up period?

A lay-up period is a set stretch of months, usually winter in New England, when you agree the boat will be out of commission. Some carriers offer a lay-up option. Others write a full-year policy with no lay-up period and keep covering the boat in storage. If your policy has a lay-up period, using the boat during it may need the insurer’s approval. Tell us when your boat is hauled and where it is stored.

Does yacht insurance cover a hurricane haul-out?

Some policies pay part of the cost to haul out or move a boat when a named storm watch or warning is issued, and some have named storm deductibles or ask for a hurricane plan. The Atlantic hurricane season runs June 1 to November 30. Ask us which carriers include haul-out help and what your plan has to say.

Do I need insurance to keep a boat on a mooring in Rye or Portsmouth?

New Hampshire law does not require boat insurance. Marinas, yacht clubs and lenders often require liability coverage, hull coverage or both, and they may ask to be named on the policy. Check your slip or storage contract and send it to us with your quote request.

Is fuel spill liability included?

The boat and yacht programs we work with generally include coverage for fuel or oil spill cleanup and related liability under federal law, often when you carry liability coverage. Limits and terms vary. It is one of the coverages we compare line by line.

Which insurance companies do you use for yachts?

Chubb is our yacht carrier. For smaller and mid-size boats we compare Progressive, Liberty Mutual, American Modern, Foremost Specialty and Hanover. Each standard boat program has its own maximum length and value, and those limits can depend on the boat’s age and where it is kept. When a boat is larger or more valuable than those programs allow, or needs paid crew coverage or wider cruising, we place it with Chubb.

Can my yacht be covered under my umbrella policy?

Often, if the umbrella insurer’s rules allow it and the yacht carries the underlying liability limit the umbrella requires. Some umbrellas exclude watercraft over a certain length or horsepower. We check the umbrella and yacht policy together.

Sources

• NOAA Office of Response and Restoration: About Portsmouth Harbor
• NOAA National Hurricane Center: Tropical Cyclone Climatology
• NH RSA 270-D:2, General Rules for Vessels Operating on Water
• NH RSA 270-D:10, Boating Education Certificate Required
• NH RSA 270-D:11, Possession Required
• NH State Police Marine Patrol: Boating Education
• NH RSA 270-E:3, Vessel Registration Required
• NH Division of Motor Vehicles: Boat Registrations
• NH RSA 265-A:2, Operating Under the Influence
• NH RSA 265-A:19, Penalties for Boating While Intoxicated
• New Hampshire Port Authority: Moorings
• U.S. EPA: Summary of the Oil Pollution Act