All of the following are true of a Yacht Policy, except:

A yacht policy typically provides coverage for both property and liability related to the ownership and operation of a yacht. This includes physical damage to the yacht itself (property coverage) as well as liability coverage in the event that the yacht is involved in an incident that causes injury or damage to others.

Additionally, yacht policies often include specific provisions for fuel spills and the cost of commercial towing, acknowledging the unique risks associated with operating a vessel. Furthermore, lay-up warranties, which allow a vessel to be laid up or out of use during certain seasons without incurring a premium for that period, are also a standard feature of yacht policies.

However, the assertion that a yacht is covered regardless of its location is not accurate. Yacht policies typically have territorial limits specifying the geographic areas in which the policy provides coverage. Outside these limits, coverage may not apply. Therefore, the statement suggesting that a yacht can be covered no matter where it is located does not align with the standard terms and conditions found in most yacht policies.