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Insurance question

Discussion in 'General Yachting Discussion' started by jason fifield, Mar 23, 2021.

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  1. jason fifield, Mar 23, 2021
    #1
    jason fifield

    jason fifield New Member

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    Doing some due diligence regarding purchasing a 65 flybridge yacht in FL and shipping it to my home in Cabo San Lucas. I have read that insurance costs are roughly 1.5% of value of boat per year. Is that in line with what people usually pay. More importantly; do insurance companies have stipulations about how/who/when/where the boat gets used? FWIW, I will have a captain's license before I purchase the boat. I want the flexibility to single-hand or hire a captain/deck hand.
  2. Pascal, Mar 23, 2021
    #2
    Pascal

    Pascal Senior Member

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    I doubt the insurance market in Mexico is the same as it is here. Unless the boat is US flagged and the underwriters accept that it spends all its time there

    insurance premium varies widely with no logic whatsoever. I’ve seen or i ve been quoted anything from 0.5% of hull value to 5% on boats between 50 and 90 feet. Older boats are harder to insure and get charged a lot more

    as to requirements, a license helps but the most critical thing is your experience. Don’t expect to get coverage on a 65 without a captain if all you ve owned is 30’ CC...

    You re going to have to get quotes from agents in your area.
  3. jason fifield, Mar 23, 2021
    #3
    jason fifield

    jason fifield New Member

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    Pascal - thank you for verifying a lot of what I suspected. I am guessing the boat will be US flagged although I should have dual residency by then. I have 45 years of boating experience although most of that is in fresh water and boats 20'-55'.
  4. Pascal, Mar 23, 2021
    #4
    Pascal

    Pascal Senior Member

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    Then 65 should not be an issue unless requirements for operating in Mexican waters are tighter
  5. bayoubud, Apr 9, 2021
    #5
    bayoubud

    bayoubud Senior Member

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    Your experience is similar to mine except the freshwater, you will likely be approved as operator, with one additional experienced person onboard on a 65 footer. We just got a renewal premium which increased 42 % over last year, equates to 2.1% of hull value.
    On the bright side our boat is under contract and just accepted by the buyer! Insurance is now on hold.
    Booyah!!! :D
  6. NYCAP123, Apr 9, 2021
    #6
    NYCAP123

    NYCAP123 Senior Member

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    A 42% premium hike could definitely prompt boatowners to look for the 2nd happiest day. Congratulations.
  7. bayoubud, Apr 9, 2021
    #7
    bayoubud

    bayoubud Senior Member

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    Thanks. It wasn't planned but worked out in our favor on the insurance renewal within 3 weeks. Your right, if this is the norm it will get boat owners attention. Our premium has almost doubled in three years. I think these big increases are mainly here in Florida and high risk hurricane areas.
    Have a sign on my deck...."Paradise ain't cheap!"
  8. DOCKMASTER, Apr 9, 2021
    #8
    DOCKMASTER

    DOCKMASTER Senior Member

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    Regarding the question of where the boat gets used; Yes, this has to be defined to an extent. You will have limits where you can go u less you can find a policy otherwise (unlikely). If you occasionally want to go somewhere outside of your coverage area you can usually get trip coverage from your insurance. For example, boats in the Seattle/Puget Sound area are usually not covered to go to Alaska unless they get trip coverage or have a policy specifically covering it.
  9. MYTraveler, Apr 10, 2021
    #9
    MYTraveler

    MYTraveler Member

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    In Cabo, you will have an additional problem -- hurricane coverage. I pay extra for the privilege of having my boat in a hurricane zone, but during hurricane season the coverage is subject to stiff conditions. Basically, I cannot enter the zone during a named storm, and must have (and follow) an approved hurricane plan. That basically means that I am prepared to move the boat out of the zone if a storm is approaching. My insurance company must pre-approve anyone running my boat (and actually even crew -- and they have declined a few guys over the years), so that leaves me vulnerable to an approved captain being unable (or unwilling) to move my boat as a storm approaches. Admittedly, there is a trade off between coverage restrictions and pricing, so you may be able to find a less restrictive policy to your liking. BTW, my annual premium is about 0.75% of agreed value. And my boating resume was scrutinized before approval (with surprisingly many/detailed questions asked).
  10. Pascal, Apr 10, 2021
    #10
    Pascal

    Pascal Senior Member

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    problem is that the insurance companies let owners sell their boats to them every time a hurricane strikes. They just pay, and often total boat that could easily been repaired. A neighbor of mine got damaged to a 58 Hatt My during IRMA. Older boat but in good shape with an owner who wanted to downsize. Didn’t move the boat before the storm... boat had minor cosmetic damage and needed $30k of repairs. Insurance totaled it, paid the full $200k policy and sold the boat to a flipper for $40k

    during the same storm, 2 late model $2M+ 60+ sportfish sunk at their slips along with a few other boats that could easily have been moved to safety. They had the range and the speed

    same with Maria in St marten. A number of large boats (80+) could easily have left and head south to Antigua or Guadeloupe but stayed in place for no reason. Millions and millions of dollars in claims

    We are paying for this.
  11. bayoubud, Apr 10, 2021
    #11
    bayoubud

    bayoubud Senior Member

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    Agree, lots of unattended boats in Florida, many owned by absentee owners. Some show up in our Bayou every hurricane warning, improperly anchored. You know how that ends.