Buying a boat during hurricane season

[AdLeSails]

Hello all,

Relatively new to the sailing world. I have found a couple of boats that I am interested in buying in Florida. (Sailboat, 40+ foot, eventual full time liveaboard)
Will most likely have to move location.

Question is: if I make an offer now - August - how do I go about closing the deal during hurricane season? Do I stall the closing until after the season? Race it down south out of the hurricane belt? Close and hope for the best…?

Advice appreciated.

[Wolfe10]

Buy it when you want.


Make sure to arrange for insurance BEFORE closing.

[gonesail]

closing on a boat in September in Florida sounds like a roll of the dice. Stalling until November or December seems unlikely. Getting insurance could be a hassle or even impossible. Mostly I guess you hope for the best and get a really good price.

[BVIbrian]

Depends on if it's "cash", or if there's a bank involved. Everything else flows downhill from there.

[AdLeSails]

Care to elaborate?
Will be a cash deal.

[letsgetsailing3]

Will you be insuring it?


If so, the timing doesn't matter as much.


Otherwise, maybe don't look until after hurricane season, or buy outside of the hurricane belt.

[GordMay]

Boat insurance can cover damage, your vessel sustains from hurricanes [named storms]. But, it’s not always included in policies, by default.

You need to check your policy, before storm season, as many different types of exclusions, deductibles*, and conditions, may apply to your boat, regarding hurricane [named storm] damage.

Insurance companies will want to know your plan, in the event of a storm, including where [if] the vessel will be hauled, and stored.
If boating in a hurricane-prone area, named storm coverage is one of the most important components, of the policy.

Check to see if protections, from hurricane damage, are included in your policy. If needed, don’t wait until the last second to add it.
Carriers may not add hurricane coverage to your policy, days before a storm is about to hit. Some providers have rules that prohibit them to bind policies, when a hurricane or tropical storm watch, or warning, is in effect.
Also, make sure damage from flooding, like a storm surge, is included in your hurricane protection, not just wind damage.

According to United Marine Underwriters:

* “A Named Storm Deductible (NSD) is common today for vessels in areas subject to hurricanes, tropical storms and tropical depressions. The NSD is higher than the normal hull deductible and will be applied if the boat is damaged due to a named storm.

The NSD varies with each boat insurance company. Some do not have a NSD; others will have 2%, 5% or 10% of the boat value or 2 times the hull deductible. The most common is 5% of the hull value with 10% in high storm areas such as Florida and the remainder of the Gulf Coast.

In addition to the deductible being higher, the NSD also applies in the event of a total loss.”

[Rucksta]

Current owner likely has a risk mitigation strategy.
Berthage, reserved secure hardstand, access to hurricane hole, rapid access to alternate location.

Are you able to leverage that structure?
Perhaps as a contractual term.

Or

Buy 51% of the vessel with must exercise option for the 49% after the season.
Maintain existing insurance and risk mitigation.

[keepondancin]

Some years ago I was told that insurance companies won’t write a policy in hurricane areas if there are any names storms occurring anywhere.

[BVIbrian]

Originally Posted by AdLeSails

Care to elaborate?
Will be a cash deal.

If there's no financing, then there's no 'mandatory' insurance, and you can proceed unfettered. No waiting for multiple entities, no dealing/waiting with insurance brokers. Determine your acceptable risk/reward ratio, then buy it and move it ASAP. Eventually, some marina somewhere will want to see your liability insurance, but until then....get underway!

[Snore]

Originally Posted by AdLeSails

Care to elaborate?
Will be a cash deal.

Some firms will cover hull and liability if there is no storm "in the box". Be aware, there is a surcharge for the additional risk of keeping a boat in the 'hurricane zone'.

You can almost certainly get liability alone if there is no storm "in the box". Just make sure the liability will cover you if the boat breaks free and damages another vessel.

The above questions are best answered calling some insurance companies.

The above is based on assisting owners in many purchases- your experience may differ slightly based on circumstances (ya that is a disclaimer).


The big question only you can answer is -- Are you comfortable risking the cash if you don't have hull insurance?

[S/V Illusion]

Originally Posted by AdLeSails

Question is: if I make an offer now - August - how do I go about closing the deal during hurricane season? Do I stall the closing until after the season? Race it down south out of the hurricane belt? Close and hope for the best…?

Advice appreciated.

Analysis paralysis.

The current owner and every boat owner here in Florida faces the same consideration. You, as a new owner, are no different in this respect. Purchase of a new boat is no different than owning a current boat - we all face the same risk..

For the same reason no one sells their boat simply because it’s “hurricane season”, buying one during the season is no different.

[leecea]

Race it down south out of the hurricane belt?

Does this mean you plan to buy it and immediately leave the US and head south?

You don't plan to move it north up the US East Coast and wait out hurricane season?

[Shrew]

Originally Posted by AdLeSails

Question is: if I make an offer now - August - how do I go about closing the deal during hurricane season?

Do I stall the closing until after the season?

I doubt anyone would be willing to enter into a P&S agreement where the closing was delayed through the heart of hurricane season. You're asking him to take the boat off of the market, then wait for 3 months and assume all of the risk.

[boatman61]

Have the cake and eat it too..