Navigating the process of insuring your new boat has become increasingly intricate and costly since the significant hurricane season of 2017, compounded by the impact of Hurricane Ian in 2022, which led to substantial losses for insurers due to yacht damages. Traditionally, an annual premium of approximately 1-2% of the hull value served as a rule of thumb; however, it has progressively edged closer to the 3% threshold. Additionally, limitations on areas of use have become commonplace. It's important to note that if you haven't owned a yacht within 10 feet of the size you are purchasing, you may be obligated to spend additional days onboard your new boat, accompanied by a licensed Captain to assess your proficiency as an operator.
While it is not our intention to deter you, it is essential to address the reality upfront that securing insurance for your cherished possession may prove to be one of the most challenging aspects of your yacht ownership journey. The available options for insurance coverage may vary depending on the location of your ownership, whether it be the US East Coast, Florida, Caribbean, South Pacific, or Mediterranean regions.
As your trusted Moorings/Leopard Yacht Broker, we maintain extensive connections within the insurance industry. Our experience has shown that collaborating with a specialized marine insurance broker can yield advantages in finding the most suitable policy tailored to your unique circumstances, taking into account factors such as your expertise, area of operation, and the time of year.
If you are contemplating a yacht purchase in the future, we encourage you to reach out to us. Initiating the conversation will enable us to connect you with seasoned insurance agents. In the past, insurance matters may have been considered one of the final pieces of the puzzle, but in the present landscape, it is advisable to commence the process early, concurrently with your boat shopping journey.