Hong Kong has various types of boats, such as small fishing boats, sailboats and luxury yachts. Owning a yacht in Hong Kong is a dream that some people are actually living.
The Hong Kong Sea and marina docks are full of yachts, with thousands of yacht club members. It is an exclusive lifestyle; however, owning a yacht is a luxurious dream followed by risks.
Each yacht risk can result in expensive bills and damage that even yacht owners may struggle to pay. Every yacht owner or boat owner must understand these risks and have a proper protection plan.
Hence, if you already own a yacht or plan to buy one, you must read this article and protect your luxury assets.
Top Risks of Owning a Yacht
Weather Risks
Any Hong Kong resident will agree that the weather is unpredictable. Hong Kong is often hit by typhoons, making owning a yacht riskier. Bad weather can seriously affect any yacht while at sea or even when docked.
Yacht owners in Hong Kong are always advised to check the weather before leaving the dock. Additionally, yacht and boat owners are instructed to park their vessels in special typhoon shelters when the observatory announces the possibility of a high-level typhoon.
However safe a yacht owner is, the weather can still be risky. Violent weather can result in severe damage and huge repair bills. Weather can include typhoons, rough seas, lightning or any natural disasters that affect the vessel.
Fires & Explosion Risks
Yachts are complex vehicles with many gears, large engines and flammable fuel. There is always a chance of boat fires due to electrical, engine problems, fuel leaks, poor maintenance or on-boat activities.
Fires and explosions are unfortunately frequent and sometimes unavoidable. A yacht fire can also spread when vehicles are parked nearby.
For example, unfortunately, in 2021, a fire in a Hong Kong typhoon shelter damaged 20 vessels. The example proves that even a shelter can be unsafe and result in damages. When owning a yacht, fires can occur anytime and damage everything a yacht owner has dreamt of.
Third-Party Accidents Risk
Much like cars, yachts have the risk of accidents and collisions. Yacht accidents can occur between yachts or public property. These accidents are known as third-party accidents that can lead to injuries or property damage.
These accidents could occur at any point, at sea, docking or even when docked. The yacht owner will always be liable if their yacht causes any third-party damages. They will have to pay for repairs and compensation costs.
Third-party accidents can lead to hefty payments and are a crucial risk when owning a yacht in Hong Kong. It may not even be the yacht owner’s fault, but may still be held liable.
Sudden Emergency Risk
When owning a yacht, taking it out to sea is the best part, but a lot can happen at sea. Some of these risks are emergencies where there is nothing the crew or owner can do—for example, breakdowns, crew/guest injuries or loss at sea.
It is one of the worst risks due to the feeling of being hopeless and lost. Unlike the road, you can’t just walk to the nearest gas station or garage for help. Yacht owners must know emergency numbers they can call during these times; however, some emergency companies may be costly.
Why Every Yacht Owner Needs Yacht Insurance?
Every yacht owner should have a protection plan that protects their luxury asset from all risks. The best yacht protection management is a high-quality yacht insurance policy. Yacht or boat insurance protects a yacht or boat from risks and emergencies.
The insurance will cover all the risks above and provide 24/7 hotlines that connect a policyholder to towing and rescue services. It is the perfect insurance when owning a yacht in Hong Kong – as it protects the yacht and the people on the vessel.
In fact, third-party insurance coverage is mandatory in Hong Kong. Yes, a yacht owner can just purchase third-party yacht insurance; however, that basic policy will not cover all yacht risks that may be hit at any point.
A high-quality insurance can save a yacht owner thousands due to the financial protection. More importantly, the insurance provides peace of mind and safety when things go wrong. Even if you are lost, the insurance will help you get back to shore in the safest and most efficient way.
In our yacht insurance guide article, you can learn about the policy, premium calculation, and coverage in more detail.
To Learn More about yacht insurance and boat insurance and get the best yacht owner coverage, contact Red Asia Insurance.
