Recreational Boat & Yacht Insurance – Current Environmental & Economic Impacts
Recreational Boat & Yacht Insurance – Current Environmental & Economic Impacts
We continue to see a changing property insurance industry that has had its profitability challenges recently, marine being especially targeted with a reduction in international property re-insurance capacity. Natural disasters such as wildfires, hurricanes, tornadoes, ice storms, and flooding are the largest contributing factors, but economic conditions including civil unrest and inflation are also contributors. This has resulted in more insurers exiting the recreational and commercial marine insurance sectors, and increased premiums in all segments of property insurance.
Hurricane Ian made landfall in September 2022 near Fort Myers, FL and the boat and yacht damages from that one storm alone has exceeded $1 Billion dollars, the majority paid out by insurance companies. As we continue to experience unusual weather events across the country we expect to see at least another 2-3 large hurricanes threaten to make landfall in the U.S. before the 2023 hurricane season is over.
Both commercial marine and recreational boat and yacht insurance premiums continue to increase for vessels located on the coast from NC to TX not only due to the major insurance losses from these large named storms, but the entire industry is being forced to increase premiums across the U.S. due to the increased cost of boat repair claims since 2020. Including shortage of parts, increasing labor repair rates, repair delays due to short staffing, and increasing defense costs.
Gallagher Charter Lakes as a Specialty Boat and Yacht Marine Insurance Brokerage has partnered with multiple A rated insurance companies to offer boat owners the best coverage at affordable premiums. We stand ready to help boat owners weather through these economic conditions and environmental disasters. We ask coastal Atlantic and Gulf boat owners to please do everything possible to protect their property from storm damage. The less damage we incur, the more marine insurance options we will have open to us and the less likely insurance premiums will increase.
Boat/Yacht Storm Protection Tips
Depending on location and situation, vessel owners may choose to:
1) Haul the vessel out of the water (normally the best option and most insurance policies will help with haul-out costs if a warning is issued where the vessel is located).
2) Move it to a safer location away from the storm path (again a good option and most policies will help with re-location costs if a warning is issued where the vessel is located).
3) Navigate the vessel up an inland river system or a canal system if able and secure it with strong lines. Placing large fenders around it will protect it from floating debris or other vessels that may get loose.
4) Secure it in its berth in the marina. If the best option available is to keep it the water, the following steps are advisable:
- Double all lines
- Add additional large fenders
- Remove all portable equipment
- Fully charge the batteries and check to ensure their capability to run automatic bilge pumps for the duration of the storm
- Do not stay aboard