Financing/Insuring Older Boats?

[Steely Dancer]

A while back we made an offer on a '77 Swan (didn't get it) but leading up to that decision we made some inquiries about financing and insuring boats of that age.

A couple brokers we talked to told us that lending organizations won't typically offer financing for boats over 20 years old, and a few of the insurance companies we spoke with offered similar barriers to entry.

Were these experiences anomalous? How do people buy and insure boats that were manufactured in the 20th century?

(We're in the Pacific Northwest US)

[captbig]

Originally Posted by Steely Dancer

A while back we made an offer on a '77 Swan (didn't get it) but leading up to that decision we made some inquiries about financing and insuring boats of that age.

A couple brokers we talked to told us that lending organizations won't typically offer financing for boats over 20 years old, and a few of the insurance companies we spoke with offered similar barriers to entry.

Were these experiences anomalous? How do people buy and insure boats that were manufactured in the 20th century?

(We're in the Pacific Northwest US)

I think it depends on the type of boat and price. If it's a pricy boat its probably not the investment as it will likely have lots of problems or needs lots of fixing up. Some boats are in great shape though. As long as you are handy and can fix anything not a bad idea, but the price should be low enough where you can afford it at hat point.

[nc_cabin_fever]

Bumping this topic.

If anyone has had success financing/insuring boats that have been well maintained, between 20-25 years in age, I’d love to know how this went. Who did the financing? Did they penalize you on the rate, term, or money down? Also - did the insurers require you to replace systems that you didn’t expect?

[psk125]

We first got insurance on our 1981 J/36 when it was 16 years old, and kept it insured until we sold it last season, 24 years later. They asked for photos of different systems (engine, nav instruments...) once, about four years ago, to ensure that they looked operational, but no other requirements. In 2021 our "new" boat became a 1996 Sabre 402, so it was 25 years old. We had no problems insuring it through Gowrie Group, though we had obviously been long-term customers. For financing Essex Credit has a reputation for dealing well with the vagaries of sailors and sailboats afaik.

[ksuderman]

I encountered many of the same problems when I was looking to finance an older (20+ year old) boat. Most finance companies don't want anything to do with a boat that old, and those that were willing to finance wanted eye-watering interest rates... I would have been better off charging it to my credit card... People buying older boats pay cash for them. That is what I ended up doing.

I suspect insurance will depend more on your sailing background/history and condition of the boat. If the boat surveys well and you've owned similar sized boats you should be able to find insurance. Always check for insurance before putting in an offer!

[hpeer]

Recently there was a post by a broker on a thread now closed.

This thread, see post 18 my PirateNorm

https://www.cruisersforum.com/forums...-259593-2.html

A world of information.

We have an 1987 steel hull. 6 years ago the insurance companies started getting silly with demands for surveys and ultra sounds. The cost was rivaling the cost of the insurance. I got sick of it. We now have just liability which is expensive enough.

Now the insurance company wants me to layout a guardinage plan for the boat while in dry dock …. With just liability. I talked with the broker and she gave me a ling response that basically said “Insurance companies are running scared, suck it up.”

[mogulskibum]

We successfully financed a 40 year old boat with Lightstream (subsidiary of SunTrust, which is now something else - Truist, maybe?). Anyway, their limit is $100k, and the rate wasn't stupid.

They have very high credit requirements (basically need pristine credit & good income), and they don't actually take a security interest in the boat (i.e. they don't take a lien) - which seems nice, until you realize that this means you can't deduct the interest.

But, they seem to be one of the few options around for 20+ year old boats.

For insurance, we went with BoatUS - no problem underwriting. Someone else (honestly don't remember who) offered to underwrite, but once they actually reviewed the survey they came back with such a ridiculous set of required fixes it was obvious that they didn't actually want to insure the boat. (E.g. surveyor said "couldn't verify compass light worked in bright sunlight, recommend verifying functionality in the dark;" insurer said "replace the compass." That was probably the most ridiculous one, but there were a whole string of stupid corrections they wanted done "within 10 days.").

I sent BoatUS the survey with a written plan of how/when we were going to correct the actual problem items, and they underwrote it without even a question.

[nc_cabin_fever]

Wow - thank you all for your thoughts and experiences. [emoji15]

[letsgetsailing3]

I suppose the good news is that the limited availability of financing and insurance for older boats helps keeps the cost down.