You’ve inherited a yacht. It sounds exciting – travel, luxury, adventure – but there are practical considerations to weigh, like costs, yacht insurance, and maintenance. Now what?
1. Get a survey. Before you start making plans of any sort, you need to figure out what you have inherited. Is it seaworthy, in need of maintenance, or ready for the scrap yard? (The sooner, the better in case the yacht is worth less than any upcoming fees.) An expert can assess the state of the yacht and let you know its value as well as determine any issues that need immediate attention and repair. If the yacht is deemed unusable, or if repairs are excessive, you might want to research the cost of scrapping it.
2. Price out costs to determine whether to keep it, sell it, or scrap it. Similar to buying a used yacht, you need to figure out what it will cost to repair, maintain, insure, and store the vessel you’ve inherited. Depending on where the yacht is currently, you may need to explore the cost of moving it closer to you – which can be significant, especially if it’s out of the country. If you feel you can cover the cost of a marina, yacht insurance, and any necessary improvements or repairs, you can start taking steps to get out on the water. If these costs are beyond what you want to pay, consider selling the yacht. You can hire a broker to handle the yacht sale if you don’t feel like dealing with it personally. Keep in mind if you sell the yacht for more than it’s valued at you will have to pay tax on the gains.
3. Keeping it? Learn how to operate the yacht. If you’re new to yachting and you decide you’re going to keep your inheritance, take some classes. Training will give you confidence and skills to avoid dangerous situations and as a bonus may earn you a discount on your yacht insurance policy.
4. Plan before you go cruising. Restock the emergency supplies and first aid kit and check that you sufficient yacht insurance. Be sure to stock enough food and water for everyone on board and leave a float plan with someone on shore.
For the best quotes on comprehensive yacht insurance coverage from the top marine carriers, contact the yacht insurance professionals at Global Marine Insurance.
Our yacht insurance specialists offer a complimentary review of all your marine insurance coverage needs.