OnBoard Magazine - Issue XII - 2020 Season

I t should go without saying, but quality insurance is a critical ingredient to an exceptional boating experience. Not only is it required for most financing, but protecting your vessel from accidental damage, storms and theft, as well as covering your personal injury liability, is essential. You’ve worked hard to get to this point and find the right boat to make the trips of your dreams. Finding the perfect insurance for your high-worth yacht (and its specific uses) is not a fifteen-minute exercise. That’s where the expertise of an experienced agent comes in. We sat down with Eric McDowell, Executive Vice President of Christi Insurance to get some tips and insight on the current state of yacht insurance. According to McDowell, the pricing of your coverage is always an important component, but it should never be the first or only consideration. When shopping for insurance you should be looking for “a provider with high financial ratings and a long track record of commitment to the marine market,” he says. An excellent reputation for claims service and settlement history is also recommended. A dynamic agent will match the right company and policy to your needs and then work to ensure it continues to be the best value and fit for you throughout the seasons and years. A CHALLENGING ATMOSPHERE Marine travel has historically been fraught with risks, but technology and safety advances continue to help us tame the seas. In recent years, however, the scales have seemingly tipped slightly back towards Mother Nature’s side. Insurance premiums have been on an upward trend, largely as a result of the disastrous hurricane seasons of the last three years. Major hurricanes Harvey, Irma and Maria punctuated 2017, battering Texas, Florida and Puerto Rico, respectively. In 2018, Florence slowly bore down on the Carolinas while Michael wiped out entire towns in the Florida panhandle overnight. The 2019 season was dominated by Dorian, another incredibly powerful storm that took painfully long to make its epic landfall in the Bahamas and then turn up the U.S. East Coast. It is easy to see how the intensity, duration and unpredictability of these storms can make even the most solvent and diversified of underwriters pucker and cringe. Thus, there is a need for separate hurricane riders and deductibles for boats staying south of the Florida/Georgia line from June 1 through November 1 each year. Mitigating wind and storm surge is not the only concern with severe weather though, as McDowell also reports that they’ve seen an uptick in the severity of lightning strike claims. Storms may or may not be getting more frequent, but he points out our boats are certainly getting more complex. The scope of modern electronics integrated into almost every corner and compartment of the modern yacht makes it more susceptible to serious electrical damage. For example, electronically controlled motors can be rendered still and unstart-able by a “perfect” strike. Simply put, as boat builders and owners stuff more advanced and interconnected electronics aboard, up go the chances of significant damage and the consequent repair bills 3 THINGS TO KNOW ABOUT YOUR YACHT INSURANCE Keeping you COVERED 40 BLUEWATER