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Old 04-24-2013
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Re: Insurance and cruising...

Brian - Legacy was also is a perfect demonstration of why insurance is a scam. a boat like that is un-insurable or have ridiculous out policies for losses. Most people with yachts like that are forced to self insure. Insurance premiums, especially in proverbial high loss areas like florida, are not trivial. In my neck of the woods, premiums alone (not deductibles, co-pays, co-insurance, etc) are in the neighborhood of 2-3% of agreed value. Not to mention, they pay out in depreciated value.

If one is smart and has resources, they should think about self insurance! Put aside the money paid in premiums and have a catastrophe fund that can help bring the boat back. But then again, I would also carry a umbrella liability policy for $1-$2MM. A common "gotcha" of an umbrella policy is that they require you to have $300k of liability coverage on the underlying asset before they begin coverage.
S/V Jendai
Beneteau 343

Last edited by night0wl; 04-24-2013 at 11:35 AM.
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