What Does Insurance Cost and Are There “Traps” to Avoid?
Generally, the annual premium costs around 1.0 – 2% of the “declared” hull value. So if you declare your vessel to be worth $100,000 the annual premium is around $1,500 for normal private use. Charter coverage is slightly higher. You may need a recent survey on the boat and insurance companies wants to see the “declared value” within 20% of the “appraised value” noted on the survey. Recently some insurance companies are not providing coverage during hurricane season in the “hurricane zone” (Bahamas to Grenada) so if you are operating in these areas, beware!
