Boat insurance costs if LLC vs private party owner

[sweet red]

Our last boat, a 46 ft Hatt was owned and insured as private party. We are considering structuring this one through an LLC. Since this would require us to go through the process as a commercial entity, anyone have any idea on how this will affect the cost to insure? LLC vs Private owner?

 

[Tinman]

Depends whether you are commercial or private use.

 

[rsmith]

Put it in the LLC Lein the boat and forget the insurance

 

[Boatsb]

a commercial policy will probably cost more.

 

[captcrunch]

If the llc is for the sole ownership of the vessel usually there is minimal if any additional cost as this is quite common. I handle lots of marine insurance and would be glad to answer any specific questions

 

[Boatsb]

If the llc is for the sole ownership of the vessel usually there is minimal if any additional cost as this is quite common. I handle lots of marine insurance and would be glad to answer any specific questions

So what's the benefit of insuring it as an llc?

 

[sweet red]

So what's the benefit of insuring it as an llc?

If we complete this purchase and place the boat in an LLC from the outset, we can't insure it as private party. We want to keep a distinct, legal separation. Just not sure of the cost difference, if any. I am learning that to insure a boat on the Atlantic is double what we paid to insure our very similar boat in the Pacific, including Mexico. I have a bit of sticker shock!

 

[rsmith]

The last several doctors offices I was in had a sign that they had no insurance. You had to sign a waiver that you wouldn't sue them if you were treated. I have several friends with airplanes that do the same if you want to fly with them.

 

[sweet red]

The last several doctors offices I was in had a sign that they had no insurance. You had to sign a waiver that you wouldn't sue them if you were treated. I have several friends with airplanes that do the same if you want to fly with them.

Going without insurance is not an option for us. Every marina requires proof of insurance, and we will be traveling extensively.

 

[GCSI]

I'm familiar with both sides of the insure / not insure with corporate veil. Understand, if something happens and you have assets, count on a plaintiffs attorney coming after you with all guns blazing. One error in corporate record protocol or a home town motions ruling and you'll be in for a battle of a lifetime. Even if you prevail, the cost of defense is significant with attorneys seeming to bill based on what you have to lose.

 

[saltshaker]

If we complete this purchase and place the boat in an LLC from the outset, we can't insure it as private party. We want to keep a distinct, legal separation. Just not sure of the cost difference, if any. I am learning that to insure a boat on the Atlantic is double what we paid to insure our very similar boat in the Pacific, including Mexico. I have a bit of sticker shock!

A lot depends on where you berth the boat, where you live and where you cruise. Policies vary greatly and so does price. I feel insurance for my boat is relatively inexpensive but I'm not in Fl during hurricane season. That makes a huge difference in cost. My premium dropped by over 50% when I left Fl and I had a very good rate to begin with. Many policies can be as much as 75% less if your not in FL.

 

[sweet red]

A lot depends on where you berth the boat, where you live and where you cruise. Policies vary greatly and so does price. I feel insurance for my boat is relatively inexpensive but I'm not in Fl during hurricane season. That makes a huge difference in cost. My premium dropped by over 50% when I left Fl and I had a very good rate to begin with. Many policies can be as much as 75% less if your not in FL.

Thanks, Jack. Even getting quotes for berthing out of NC, where the boat is now, Coastal cruising only, credit for 40 years of boating experience, never an accident or claim, previous boats of similar size/make owned, and eliminating Florida, our quotes are coming in at $7K-$8.5K per year. This isn't over-insured, either. Insuring just at our cost to purchase, not replacement. This compares to $4K per year for our 46 ft Hatt, to cruise the entire Pacific coast down to PVR, MX.

Seems crazy to me. Adding Florida in, our quotes went up to $9K-$12K per year for the 1977 58 ft Bertram. These are private owner rates, not commercial rates.

 

[bobk]

Thanks, Jack. Even getting quotes for berthing out of NC, where the boat is now, Coastal cruising only, credit for 40 years of boating experience, never an accident or claim, previous boats of similar size/make owned, and eliminating Florida, our quotes are coming in at $7K-$8.5K per year. This isn't over-insured, either. Insuring just at our cost to purchase, not replacement. This compares to $4K per year for our 46 ft Hatt, to cruise the entire Pacific coast down to PVR, MX.

Seems crazy to me. Adding Florida in, our quotes went up to $9K-$12K per year for the 1977 58 ft Bertram. These are private owner rates, not commercial rates.

That is high unless your boat is well over half a mil. Did you get a quote from John Horton at Jack Martin & Ass? He has access to some good policies, especially if you are an MTOA member. But maybe the cost reflects the proximity to the 'grave yard of the Atlantic'?

Bobk

 

[mrdeepseafisher]

That's too high of a rate, I keep my boat in Carolina beach NC , we are about 2K per year. Can't remember everything but I think we get it through wells marine in wilmington NC. Boat is in the paint shop in Beaufort and paperwork is on boat. I happen to be at the boat this weekend and can get contact info tomorrow. Give me a call and I can provide info. 919-818-7852

Lee

 

[saltshaker]

That is way too high. I pay about $2400 for a 65 Hatteras SF insured for much more than the price of that 58 Bertram. I was just under 5K when the boat was in Fl and covered during storm season. I had Ace at $1800 but that didn't include FL coverage. that rate was prior to Sandy so I doubt I could get that again. My coverage includes the entire east coast including FL and the Bahamas except from 6/1-11/1 when anything south of Cumberland Ga would require a rider.

 

[Pascal]

Some of these numbers sound high I don't have te exact nr but insurance on the 2003 johnson 70 i run is around $7k I think, east coast and bahmas year round now based in Florida. About $1M value LLC owned

Starting to shop for my hatt.

 

[sweet red]

That's too high of a rate, I keep my boat in Carolina beach NC , we are about 2K per year. Can't remember everything but I think we get it through wells marine in wilmington NC. Boat is in the paint shop in Beaufort and paperwork is on boat. I happen to be at the boat this weekend and can get contact info tomorrow. Give me a call and I can provide info. 919-818-7852

Lee

Thank you. Just got Wells Marine info from another source as well. We are calling Liz in the a.m. Thanks again!

 

[sweet red]

That is way too high. I pay about $2400 for a 65 Hatteras SF insured for much more than the price of that 58 Bertram. I was just under 5K when the boat was in Fl and covered during storm season. I had Ace at $1800 but that didn't include FL coverage. that rate was prior to Sandy so I doubt I could get that again. My coverage includes the entire east coast including FL and the Bahamas except from 6/1-11/1 when anything south of Cumberland Ga would require a rider.

I feel my heart rate returning to normal. Thanks for the feedback, Jack. I'll keep digging.

 

[sweet red]

Some of these numbers sound high I don't have te exact nr but insurance on the 2003 johnson 70 i run is around $7k I think, east coast and bahmas year round now based in Florida. About $1M value LLC owned

Starting to shop for my hatt.

Thanks for the info. Why we would EVER have been quoted numbers in the $8K and up range is beyond me. Especially since we were only asking for coastal cruising excluding seasonal Florida coverage. The forum family comes through again!

 

[Angela]

To give you some perspective, I'm insured with Seaworthy with agreed value at $250,000; $1,000,000 liability; $1,000,000 uninsured boater; $854,400 fuel spill; $10,000 med pay; $5,000 personal effects; and Longshore and Harbor Workers Comp. Windstorm is included. Deductible is $12,500. My range is inland waters, the Atlantic Ocean, including the Bahamas, and the Gulf. It also says Pacific Coastal, although I'll never go there. I am year round in Miami, FL. Boat is owned by a Delaware LLC and is a 1980 58' motoryacht. My premium is $4,800/year. I have owned the boat for almost 10 years now; no claims. I can't imagine why having the boat owned by a LLC would have any bearing on the insurance premium, but then again, I'm not in the insurance business, either.

Remember, if you ever sell your LLC-owned boat and the boat is the sole asset of the corporation, sell the corporation rather than the boat and sales tax on the boat won't be triggered when renewing registration because the owner of the boat never changes. Something to consider when buying a boat, too - if you can find one that is owned by a corporation, just buy the corporation rather than the boat.