Insurance - How do you do it?

[Lawnmower]

I'm new to sailing (have done a few courses) and I'm planning on buying a boat for around $100k in the Caribbean and building some experience there for a couple of years before going through the canal and crossing the Pacific. The trip would involve a mixture of sailing single handed and with crew.

I've reached out to a few insurers to try and get quotes for this, or parts of this (all rejected) and they haven't been super helpful in specifying why they're not willing to provide cover and what they would be willing to provide cover for.

So for you people who've managed to obtain some form of insurance for such a journey - I have a lot of questions.

Who provided your cover?

Is it realistic to find full insurance for these regions to cover the whole trip?

Do people normally only get 3rd party for ocean crossings, then full cover once at the destination/coastal sailing?

What do you think an insurer wants to see, as a minimum, in terms of experience, crew etc.?

Any assistance would be much appreciated!

[Jammer]

Originally Posted by Lawnmower

Who provided your cover?

We originally insured through State Farm who provided cover for the U.S., Canada, and Bahamas. We are now insured through SkiSafe. Our coverage is currently USA-only but SkiSafe has indicated that coverage is available for the Caribbean for an additional premium. We work with a local agent who has sailing experience.

Is it realistic to find full insurance for these regions to cover the whole trip?

Probably not, if you're sailing solo and don't have experience.

Do people normally only get 3rd party for ocean crossings, then full cover once at the destination/coastal sailing?

Everyone's situation is different. Based on comments from other sailors, full cover is more common than liability only. Typically if they will insure you at all, they will offer full cover.

What do you think an insurer wants to see, as a minimum, in terms of experience, crew etc.?

It depends on the insurer, the boat, and the itinerary.

Generally for smaller (25'), lower value boats ($40,000) in the USA there are insurers that will write coverage for anyone and anything.

For larger, higher value boats, they're going to want to see a survey, and they're going to want to see some sort of sailing experience, at least some of it on boats of reasonably similar size. They won't divulge exact underwriting requirements. They like to see several years or more of general boating experience ideally including boat ownership. They will ask about the largest boat you've operated. If you're jumping from 25' to 37' that's probably OK. If you're jumping from 25' to 54' they won't like it. If you are trying to insure a catamaran they would like to see some catamaran experience or at least some monohull experience of the same length. Usually they only care about the people who will be operating the boat (i.e. captain) and not about crew. They will also care about where your boat is kept and about your plans for hurricanes.

Ordinarily premiums start at around 1% per year of a boat's value, and go up based on underwriting factors.

When your itinerary is outside the USA they start to care more deeply about the specifics of where you are going and the qualifications, age, and health of captain and crew. Premiums will be higher. There will be areas that are off limits and other areas that are off limits when the risk of storms is high.

[Jammer]

Originally Posted by Lawnmower

Any assistance would be much appreciated!

Start your insurance conversations with a very specific plan involving a specific boat and a specific location. Get the HIN (hull identification number) from the broker or photograph it when you're looking at a boat you're thinking of buying. Be able to honestly tell the insurance company that you're thinking of purchasing that specific boat and that you need a quote. You do not have to be at the point where you have put in an offer. Be honest with the insurance company about that if they ask, just tell them you're trying to be organized and prepared to make a solid offer knowing you have insurance lined up.


Assuming you are a USA citizen and live in the USA, you will be best off insurance wise purchasing a boat in the USA and keeping it in the USA initially. Have a specific marina in mind that has slips available that is a plausible fit for you and the boat. If you're looking at boats a considerable distance away that will involve a long delivery, plan on having a more experienced person on board as a delivery captain.


Then see if you can get insurance, based on all that, and what it costs, and what limitations and requirements they impose. If the conversation is going well you could perhaps ask them if they'll cover a trip to the Caribbean and back.


That will get you started, but it's going to leave you with some limitations you don't want.


The other choice is to get in touch with an insurance agent that specializes in yacht coverage for international cruising. Forgive me for being blunt, but even they may not be able to help you given your situation and goals, and if they can, it's going to be expensive.



Once you've been sailing the boat for a year your options will open up considerably.