We get to know our yacht insurance clients well, and we’re all boating enthusiasts, so it’s not surprising that people confide in us. If our yacht insurance specialists were to play a game of Family Feud, and the topic was the top things people say about their mistakes purchasing a yacht, one phrase would be hindsight’s 20-20.
Here are some of the biggest yacht purchase mistakes that people share:
Skipping the yacht survey. We get it. It seems expensive. You love boats and figure you can spot value. New or used, a boat survey is wise; you’d be surprised how many defects surveyors discover. A competent surveyor is worth every penny you’ll save on undetected problems before you become the owner.
Thinking bigger is better. Many times people are dazzled by size, but keep your eye on value for your money.
Overlooking safety and functionality in design. Yachts are built to impress but do your due diligence. Read reviews posted online by other owners and learn whether the models you are considering have any common issues like a leaky interior or safety problems.
Diesel vs. gas engines. While diesel can be more cost-effective, many yacht owners discover it’s not the case for larger vessels. Additionally, diesel engines are much costlier to maintain and overhaul (usually after seven or eight years). If you are buying a used yacht with a diesel engine, pay to have a diesel engine survey if it is over three years old. The survey is a fraction of what you would pay to overhaul a defective diesel engine.
Using an unreputable broker. Choosing a reputable yacht brokerage firm or boat dealer to purchase your yacht from can help you avoid many pitfalls of the buying process. Jay Hendrix, Vice President of Staten Island Yacht Sales, had this to say, “As a company that’s been around since 1964, SI Yachts has customers that have purchased 10 to 15 boats from us over their boating lifetime. It’s because we have a reputation in the community and industry that we want to maintain. We treat our clients like family, and we look out for their best interests. If you’re going to buy a boat, especially a pre-owned yacht, using a reputable firm like SI Yachts gives you the peace of mind that we have your back.”
No financial plan. Your purchase budget must include funds for ongoing maintenance and repairs, yacht insurance (with comprehensive coverage to adequately insure your investment against accidents and liability) and moorage at a marina (and safe storage during the off-season as applicable).
When you decide on the perfect boat or yacht to purchase, contact the yacht insurance professionals at Global Marine Insurance for a complimentary review of your insurance coverage requirements.