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Old 24-03-2010, 11:05   #1
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Thumbs up How to Insure a Rented Boat ?

Hi Everyone, hope a salty cruising seadog can assist with a challenging question???

We have set aside 6 months for sailing trip but purchasing a boat to sell 6 months later has numerous challenges. We have the opportunity to 'rent' a boat through a contact but now have been stumped by the unbelievable costs of insurance.

Problem is when boat is not owned it is regarded as a 'charter' boat and smacked with huge insurance premiums. Even though we have good sailing experience, and even trying to add us to owners existing insurance policy the premiums still rocket and threaten to derail our dream plan!

Any help, advise, comments would be hugely appreciated!!!
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Old 24-03-2010, 11:19   #2
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The person chartering/owns the boat is who should be providing insurance of course that will be reflected in the rental price.
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Old 25-03-2010, 00:34   #3
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Ok, maybe I should rephrase question. Long term 'renting' doesn't seem a viable option because of prohibitive insurance costs. Does anyone have any experience with renting out a boat to a single user for extended time?
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Old 25-03-2010, 05:17   #4
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One possibility may be to buy the boat and then sell it back to the owner after six months, with the difference in prices being the rental price. Have both contracts signed at the same time. You will probably need to get it re-surveyed though for insurance. This may be more difficult if the boat is registered or is done where sales taxes would occur.


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Old 25-03-2010, 05:25   #5
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one of the reasons , that there isnt much long term rental is that if its for money then its a commercial undertaking and charter insurance applies, secondly in most countries that requires the boat to be surveyed to commercial standards.

In general you the renter do not provid ethe insurance, as you have no "insurable interest". The renter does it as part of the rental package

I have never heard of it being done other then commercial yacht charter
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Old 08-04-2010, 08:43   #6
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I think having a cruising boat for 6 months is just plain likely to be expensive. It's longer than a typical charter rental, and if you buy you are not getting a lot of time out of your 1 time costs. It doesn't make owning the boat more expensive, it makes the average daily cost more expensive. Cruising sailboats and the costs that go with them are just not cheap.

I don't think there is any magic solution. You need to weigh the options and decide if one is right for you.

My Beneteau is in charter and I know how much people pay to rent it. It's what makes it affordable for me to own. Certainly you can charter a boat with insurance for 6 months, but at that price, you are probably better off buying and re-selling, which is what I'm doing with my other boat:

On the other hand I just purchased a Hunter 30, I may only use for 2 3-month cruises and then re-sell. It wouldn't surprise me if the buy minus sell price, maintenance, storage, insurance, etc, costs me 18K or close to 2/3 the value of the boat over a 3-year period. Still, it's cheaper than renting would have been and gives me more freedom. In the end, I decided the opportunity to have 2, 3-month cruises is worth 9K per cruise or $3,000 per month.
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Old 12-04-2010, 05:29   #7
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What types of boating insurance is available for most houseboaters?
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Old 12-04-2010, 07:43   #8
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How much is too much? I pay about $15,000 per year to insure a research vessel.

I would keep shopping around. So long as you are using the boat to make money for someone else, its commercial. Commercial rates do vary dramatically depending on the usage.
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