Buy the Boat You Love
Just make sure it's insured first.
By Jeff Berndt, Senior Vice President, and Steven Vander Clay, Marine Insurance Specialist | NBOA Marine Insurance
Boat shopping along the Gulf Coast is exciting, whether you’re upgrading, downsizing, or buying your very first vessel. But before you fall in love with the layout, the engines, or the electronics package, there’s one critical piece to consider early: insurance. Understanding how insurers evaluate different boats can save you time, money, and frustration once you’re ready to close. We asked the team at NBOA Marine Insurance Agency, one of the industry’s top Boat Insurance providers, to give us a breakdown of helpful tips and here is what they had to say…
Smaller Boats Mean Fewer Insurance Hurdles
If you’re shopping for a boat 26 feet and under, you’re typically in great shape from an insurance standpoint. Most insurance companies are not concerned about prior boating experience at this size, and coverage can often be issued the same day without waiting for an underwriter to review your request. These vessels also tend to have fewer restrictions on where you store it, even allowing for hurricane-prone areas.
Navigation limits do apply, however. Most insurers require vessels over 26 feet with twin engines to extend cruising areas such as the Bahamas. Buyers purchasing a brand-new boat in this size range may also qualify for replacement cost coverage, which can provide added peace of mind during the early years of ownership.
What Changes Once You Cross 26 Feet?
Once a vessel exceeds 26 feet, insurance companies generally classify it as a “yacht,” which brings more detailed underwriting guidelines. At this point, prior ownership experience becomes a key factor. To access the widest range of insurance options, insurers often look for approximately three years of ownership experience within 10 feet of the new vessel’s size, though some may allow one year within 15 feet. Importantly, insurers focus on what boats you’ve owned (not just what you’ve operated) and the larger the vessel, the stricter these requirements tend to be.
Loss history also becomes more important at this level. Many insurance companies prefer to see no more than one prior loss within the past three to five years, and some are even stricter, declining accounts with any recent losses within the past year. Prior claims can affect not only eligibility, but also pricing and available coverage options.
Location plays a major role as well. In hurricane-prone states like Florida, insurance markets are more limited and underwriting standards are tighter. In certain coastal regions and counties, options may be even more restricted. High-value vessels often require an approved hurricane storm plan, while boats with three or more outboard engines typically need tracking or theft-prevention systems. Older, high-value boats, especially those over 10 years old, can further narrow insurance availability.
Planning Ahead Makes All the Difference
First-time buyers still have options, but with limits. Certain specialty programs through the NBOA Marine Insurance may allow coverage up to 50 feet and $350,000 in value with no prior ownership experience. Larger or higher-value boats may require surplus lines coverage and, in some cases, a full-time captain for the first year. For this reason, many professionals recommend starting with a smaller vessel and working your way up.
Surveys are another important consideration. Many insurers require them on boats 20 years and older, and sometimes as young as 10 years in Florida. Rates can also vary significantly by location — even within the same state.
Knowing the factors in play definitely help to ensure you’re prepared for shopping for an insurance quote, but the best advice is always to speak with a marine insurance specialist, as they’ll help answer specific questions and tailor the insurance policy to your needs. Agents at NBOA are happy to assist with this! Reaching out prior to purchasing any vessel allows for time to have these conversations and get the best possible insurance rate. A little preparation up front helps ensure your dream boat is insurable, affordable, and ready to enjoy from day one. To get things started with a quote, you can visit their website: www.nboat.com