Yacht

Times are changing. In the marine insurance world, there has been a shift in the underwriter’s approach to approving policies and their available coverage. Premiums are increasing and underwriters are asking more questions, resulting in a longer and sometimes more difficult insurance procurement process than it was just a few short years ago!

A second reason boat insurance premiums are on the rise is that yacht insurance is a costly line of business to write. This is because underwriters, claims adjusters, and surveyors all need to know boats, insurance contracts and be familiar with jurisdictional issues that arise as yachts cruise around the globe. And lastly increases in loss frequency & severity due to damage from hurricanes, lighting strikes, groundings, fires and litigation have affected the bottom line for yacht insurers.

Yacht insurance is an unregulated line of business which means there is great latitude for insurance companies to write into their policy contract what is, or more importantly, what is not covered by the policy.

An experienced underwriter knows the quality and reputation of the builder of your vessel. Presenting a clean out of water survey less than 12 months old on a yacht more than 10 years old, is a good place to start. If you plan to cruise where palm trees wave in the breeze, that usually means there will be additional risks, including hurricanes and lightning.

As boatowners, boat/yacht insurance provides piece of mind. We all know Murphy is there waiting to wreak havoc on us boaters. To minimize the chance of a problem aboard your boat, planning and prevention is the key to having a pleasant experience with family and friends. Whether for an afternoon cruise or on a passage at sea for several days.

We would like to remind you that you are required to have a boating license while you are navigating your boat in Mexican waters. Every boat owner, operator, and captain at the helm of a vessel must have a valid boating license that states you are qualified to operate the vessel.

Any experienced boater has likely felt the pinch of higher premiums and tighter underwriting requirements than in past years. With inflation affecting every aspect of our lives, we should not be surprised. Specific to yacht insurance rate hikes, greater frequency and severity of hurricanes and tornados, higher vessel repair costs, supply chain disruptions causing delays increasing claims costs, and higher litigation expenses play their role in the tight insurance market.