There are major implications for yacht and boat insurance during hurricane season. Florida’s “official” hurricane season is between June 1 and November 30, but hurricanes have appeared before and after these dates.
Yacht, Boat, and Ship Insurance Considerations During Florida Hurricane Season
Insurance underwriters treat this period as high-risk, which affects coverage rules, premiums, deductibles, and operational restrictions. In fact, marine insurance is especially sensitive to weather and weather patterns. Here’s how the season may impact a marine policy.
Hurricane Haul-Out Clauses
Many policies require that the vessel be re-located or sheltered.
- Hauled out of the water
- Moved inland
- Stored in a hurricane-rated marina
If a storm watch is issued, failure to comply may void storm coverage.
Navigation Limits
Policies often include geographic restrictions during hurricane season. Some examples of limitations may include:
- Vessel must remain north of a certain latitude (east, west, north, or south of a given position).
- Vessel must be outside the a particular region during hurricane season.
- For Florida boats this can include: Mandatory relocation during named storms and restricted anchoring zones.
- A vessel may be have a passage restriction until a weather service has provided an acceptable weather report. Acceptability being that of the insurance company. Example: The vessel may be prohibited from crossing or cruising within a particular body of water unless approved by the underwriter.
Hurricane Deductibles
Like aircraft insurance policies, marine policies have may have special deductibles for hurricanes which are usually higher than the normal deductible. An example of a deductible may look like:
- Standard “fixed” deductible: Example: $1,000 – $5,000 based on the insured value.
- Hurricane deductible: 5 – 10% of value (For instance, an vessel valued at $400,000 may have a deductible of $20,000 based on a 5% deductible stipulation).
Proof of Hurricane Plan
Many insurers now require a written hurricane plan describing:
- Where the vessel will be moved,
- Haul-out location,
- Docking method,
- Lines and fenders,
- Marina Risk Factors.
Also, some marine policies may include a Named Storm Clause. Such a clause may increase the deductible when a named storm is within a certain proximity or path of the vessel. Check your policy for the definition of a named storm and the storm category (or storm force.)
Other conditions may apply.
Insurance Companies May Also Evaluate
- Storm surge exposure,
- Storage facility construction type,
- Marinas,
- Breakwater protection,
- Storm surge history,
- Floating vs fixed docks,
- Market Reality (Florida Insurance).
The Southeast Insurance Group can review your yacht, boat or commercial marine policy with you. We have been South Florida Insurance brokers for over thirty (30) years and we have first hand experience with the considerations and effects associated with weather. Contact us by email or call us at +1 305-442-1500 to discuss your yacht, boat, or commercial marine insurance needs.
