Mortgagees Interest Insurance
You're covered.
For the financial interests of the mortgagee (lender) in the event of a loss or damage to the superyacht that affects the loan's collateral.
Mortgagees interest insurance (MII) for superyacht owners is a specialised insurance policy designed to protect the financial interests of the mortgagee (lender) in the event of a loss or damage to the superyacht that affects the loan’s collateral. This type of insurance is crucial when a superyacht is financed through a mortgage. Because it ensures that the lender’s investment is safeguarded even if the primary insurance policy fails to cover a claim.
Mortgagees Interest Insurance
Key Features.
The following shows the standard key features for our Mortgagees Interest Insurance policies. Yet, at Superyacht Insurance Services, our products and service are anything but standard. We will work with you to design and build a bespoke policy that is uniquely tailored to you and your superyacht.
Protection Against Insurance Gaps
Primary Insurance Shortfalls
Covers losses that are not paid by the yacht owner’s primary insurance policy due to policy exclusions, voided coverage, or other reasons.
Coverage Lapses
Provides protection if the primary insurance policy is canceled or lapses without the mortgagee’s knowledge.
Financial Compensation
Outstanding Loan Amount
Compensates the mortgagee for the outstanding loan amount in the event of a total loss of the yacht or significant damage that the primary insurance does not cover.
Partial Losses
Covers partial losses that affect the value of the yacht and, consequently, the mortgagee’s security.
Breach of Warranty Coverage
Owner’s Obligations
Provides protection if the yacht owner breaches warranty conditions of the primary insurance policy. Including failure to maintain the yacht or non-compliance with navigation limits.
Policy Voidance
Covers scenarios where the primary insurance policy is voided due to the yacht owner’s actions or omissions.
Additional Legal and Administrative Costs
Legal Fees
Covers legal costs incurred by the mortgagee in relation to the recovery of the outstanding loan amount following an insured event.
Administrative Expenses
Provides coverage for additional administrative expenses related to handling the loss or damage to the yacht.
In conclusion.
Let's talk.
Mortgagees interest insurance is a vital component of a comprehensive financial protection strategy for superyacht owners and lenders. So, by securing this type of insurance, mortgagees can protect their financial interests against gaps or failures in the primary insurance coverage. Therefore, ensuring that their investment is safeguarded. For superyacht owners, having MII in place can facilitate better financing terms, as well as providing peace of mind that their lender’s investment is protected, ultimately supporting a more secure and stable financial arrangement for their superyacht. If you’d like to arrange cover, please get in touch.
