Boat vs. Yacht Insurance in South Carolina: What’s the Difference and Why It Matters

By Brad Davis, CIC (August 10, 2025)

If you own a boat in South Carolina, especially along the Myrtle Beach coast, you’ve probably heard the term “yacht insurance” thrown around. Many boat owners wonder if their coverage changes once their vessel passes a certain size, or if “yacht” is just a fancy term for an expensive boat.

The truth is, insurance companies often treat boats and yachts differently, and one of the most common dividing lines is 26 feet in length. That doesn’t mean your boat suddenly becomes a luxury yacht the day it measures over 26 feet, but it does mean your insurance needs might change.

In this post, we’ll break down the differences between boat and yacht insurance in South Carolina, when the change happens, what “yacht certified” really means, and why it’s important to review your coverage before you head out on the water.

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Why 26 Feet Is the Common Cutoff

There’s no single legal definition of a “yacht” in the insurance world. The U.S. Coast Guard and maritime laws use different length thresholds for different rules. But in insurance, 26 feet is a common breakpoint used by many carriers.

Here’s why:

• Higher value: Larger vessels typically cost more to repair or replace.

• Increased complexity: Boats over 26 feet often have cabins, heads (bathrooms), galleys (kitchens), advanced navigation systems, and more electrical/mechanical components.

• Greater liability risk: Bigger boats can carry more passengers and may travel farther offshore, increasing exposure to potential claims.

• Different usage patterns: Owners of larger boats are more likely to take extended trips or venture into deeper waters, which may require broader coverage.

Because of these differences, insurance companies may shift your policy from a boat insurance form to a yacht insurance form once you cross that size threshold.

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What Does “Yacht Certified” Mean?

If you’ve been boat shopping, you may have seen the term “Yacht Certified” on certain models. This designation doesn’t come from the insurance world – it’s actually a safety certification issued by the National Marine Manufacturers Association (NMMA) for boats that meet specific American Boat & Yacht Council (ABYC) construction and safety standards.

The key difference is that yacht-certified boats don’t have a fixed passenger capacity listed on the capacity plate. For boats under 26 feet, federal law requires a plate showing the maximum number of passengers and weight allowed. Once a boat is 26 feet or longer, it can be eligible for yacht certification, which relies on the captain’s judgment (and the boat’s design) rather than a hard number on a plate.

It’s important to note:

• Yacht certified does not mean it’s automatically insured as a yacht.

• Insurance companies may use 26 feet as a policy breakpoint, but that’s separate from NMMA’s certification process.

If your boat is yacht certified, it’s still smart to talk with your insurance agent about whether you need the broader protections of a yacht policy — especially if you travel offshore, carry more passengers, or have complex onboard systems.

For more details on safety and capacity regulations, you can check the South Carolina Department of Natural Resources Boating Regulations or the U.S. Coast Guard Boating Safety site.

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How Boat and Yacht Policies Differ

At first glance, boat and yacht insurance may look similar; both cover physical damage to the vessel and liability for injuries or property damage you cause. But yacht insurance typically includes some broader protections and different policy terms.

Key differences may include:

1. Navigational Limits

   • Boat insurance: Often limited to inland lakes, rivers, and nearshore coastal waters.

   • Yacht insurance: Usually includes offshore coverage within specific navigational territories (e.g., East Coast up to a certain number of miles offshore).

2. Crew Coverage

   • Larger yachts sometimes have paid crew members. Yacht policies can provide liability and injury coverage for crew, which most standard boat policies do not.

3. Survey Requirements

   • For vessels over 26+ feet (or over a certain dollar value), insurers often require a marine survey to assess condition and market value.

4. Broader Liability Terms

   • Yacht policies may have higher available liability limits and cover additional exposures like fuel spill liability or uninsured boater protection at greater limits.

5. Towing and Assistance

   • Both types can offer towing coverage, but yacht policies sometimes include more generous limits for emergency assistance.

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Do All Boats Over 26 Feet Need Yacht Insurance?

Not always. Some insurers will still write a 27-foot center console on a boat policy, especially if it’s used primarily for inshore fishing and doesn’t have overnight accommodations. But most companies will recommend (or require) a yacht policy once you cross that size, especially if:

• You take offshore trips or extended voyages.

• The boat has sleeping quarters, a kitchen, or other onboard living spaces.

• The vessel’s value is significantly higher than average for smaller boats.

• You regularly carry multiple passengers or run charter trips (which requires other coverage as well).

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Why South Carolina Boat Owners Should Pay Attention

Along the South Carolina coast, from Hilton Head to Little River, boating conditions can change quickly. Many vessels here navigate both inshore and offshore waters, which can create unique insurance needs.

If you own a boat that’s approaching or over 26 feet, here’s why you should review your coverage:

• Hurricane and storm exposure: Coastal storms can cause major damage even to boats stored out of the water. Yacht policies may have different windstorm deductibles or haul-out provisions.

• Seasonal and storage coverage: Where you store your vessel in the offseason (marina, dry dock, home trailer) can impact rates and terms.

• Navigation area: If you ever plan to take your boat to Florida, the Bahamas, or farther up the East Coast, yacht coverage might be required for those routes.

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When to Review or Update Your Policy

It’s a good idea to talk with your insurance agent if:

• You purchase a new boat that’s 26 feet or longer.

• You upgrade or modify your current vessel (new motors, electronics, or refits).

• You plan longer trips or want to expand your navigational limits.

• You start hiring crew or allowing others to operate the boat regularly.

At Davis Insurance Associates, we work with multiple carriers that offer both boat and yacht insurance in South Carolina. We can help you compare coverage options, understand the differences, and make sure you’re not left with a gap in protection.

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The Bottom Line

The difference between boat and yacht insurance in South Carolina isn’t just about the size of your vessel – it’s about how you use it, where you take it, and the risks involved. The 26-foot threshold is simply a common point where insurance companies adjust coverage to match those changing risks.

Whether you’re cruising the Intracoastal Waterway, heading out for a deep-sea fishing trip, or anchoring for the night in a quiet cove, the right insurance policy can help protect your investment and your peace of mind.

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Need help figuring out if your boat should be insured as a yacht?
Contact Davis Insurance Associates today for a review of your current policy and a customized quote. We’re here to help boaters in Myrtle Beach and throughout South Carolina navigate the waters of boat and yacht insurance – so you can enjoy your time on the water with confidence.