Which statement correctly describes yacht policies relative to watercraft policies?

• A. They are less detailed
• B. They are more detailed and inclusive than watercraft policies
• C. They define a yacht as 27 ft or longer
• D. Boatowners policy automatically covers yachts

Answer: (B)

Yacht policies are more detailed and inclusive than standard watercraft policies because larger yachts carry higher value and more complex risks. A yacht policy is tailored to the unique exposures of bigger vessels, often including extensive hull and machinery coverage, equipment and gear on board, protection and indemnity (liability) coverage, medical payments for passengers and crew, and additional features such as salvage, wreck removal, towing, and coverage for personal effects. They also commonly offer more options and endorsements for navigational limits, ports of call, crew coverage, and higher liability limits. By contrast, watercraft or boatowners policies are designed for smaller boats and typically provide a more basic, there-and-back coverage with more exclusions and lower limits. That broader, more specific protection is what makes yacht policies both more detailed and more inclusive.