Insuring a yacht in Europe...

[RobbieW]

I have a friend (really ) who is a US citizen, and resident in the US, who keeps a boat in the EU. That boat is EU VAT paid but not valuable, c. €20k (an elderly Waqiuez 30ish). He is currently finding it difficult to insure that asset through the US (not valuable enough). Given the UK is now in the much the same state as the US so far as EU regulations are concerned (so people here may have tripped across this situation) has anyone any suggestions to find an insurer ? He would prefer to keep the boat as he enjoys the couple of months in the summer that he can use the boat in Europe.

 

[DavidonMersea]

I have a friend (really ) who is a US citizen, and resident in the US, who keeps a boat in the EU. That boat is EU VAT paid but not valuable, c. €20k (an elderly Waqiuez 30ish). He is currently finding it difficult to insure that asset through the US (not valuable enough). Given the UK is now in the much the same state as the US so far as EU regulations are concerned (so people here may have tripped across this situation) has anyone any suggestions to find an insurer ? He would prefer to keep the boat as he enjoys the couple of months in the summer that he can use the boat in Europe.

A good broker in the country the boat is kept in should be able to find an insurer

 

[Graham376]

Topsail cover my boat based in EU. IIRC, YYacht , obtained a license to operate in EU before they sold to Topsail.

 

[westernman]

Topsail cover my boat based in EU. IIRC, YYacht , obtained a license to operate in EU before they sold to Topsail.

Best to take a European based insurer. Slightly different things will be covered (e.g. towing by the SNSM) which are not covered on a UK based policy.

Here is a French comparative site for boat insurance:-
https://www.lecomparateurassurance.com/103372-devis-assurance/108403-bateau

Otherwise contact the usual players. Axa, Generali, April, Allianz, Maif, ...

 

[Graham376]

Best to take a European based insurer.

Tried to obtain quote locally but brokers couldn't (or wouldn't) cover UK registered boat.

 

[rotrax]

An Australian Insurance Company insures our cheap British Registered NZ based boat.

 

[Laminar Flow]

There is bad news for your friend.
To insure a foreign boat (third country) in the EU, you need an (EU) European address. Not only this, this address has to be on your registration (proof).
The other option is to form a European limited company for your boat, that registers your boat under a European flag of convenience (Polish, Dutch, etc)
Don't ask me how I know.
North American insurers do not want to know of you and if they do, it is certifiably expensive as they assume you are engaged in offshore sailing, 'cause how else did you get there?

 

[syvictoria]

Would third party only insurance open up any other options perhaps?

 

[ChromeDome]

Get an EU citizen as co-owner?

I'm with Pantaenius Yacht and happy. Probably not cheapest but you only know the value of the insurance when you have a claim.

 

[V1701]

From the sounds of it he hasn't just bought it, how was it insured previously? I had a ferro boat in Greece once, no UK insurer would touch it but local broker did. I had a UK address though, can't remember whether that was a requirement...

 

[Frogmogman]

UK flagged yacht, I’d go with a British insurer if the lack of an EU address is an issue.

in reality, I fail to see how the risk would have changed post you-know-what.

 

[ashtead]

It’s not clear where the boat is registered ? The location of risk generally dictates which underwriter can cover . Is the boat registered in an EU state?

 

[westernman]

It’s not clear where the boat is registered ? The location of risk generally dictates which underwriter can cover . Is the boat registered in an EU state?

The insurance company will want to see a survey done by a nationally registered surveyor in their language according to their requirements. I.e your UK or American survey will count for nothing.

I don't think they are nearly so picky about the flag.

 

[RobbieW]

It’s not clear where the boat is registered ? The location of risk generally dictates which underwriter can cover . Is the boat registered in an EU state?

Should have said in the OP; the boat is registered in the US. It used to be UK registered but divorce intervened, the boat was bought, and has been kept for several years now, in Italy.

 

[Laminar Flow]

I've just been through this mess. What the insurer wants to see is a European address on the registry. The flag is irrelevant. Just getting, say, a Polish registry does not give you an EU address, which is what the insurance company requires. The Uk has now third country status and you cannot get an EU insurance.

 

[greeny]

Given that SSR now needs you to give a UK address on the application, does all this mean that an ssr boat can't be insured by a company based in any other country than the UK?
I'm going to try and do exactly that later this week when I get my "new to me" boat insured here in Portugal. I have a short list of companies here in Portugal I have been given by friends who say they do exactly this and that I should have no problem. The friends include Portuguese people with SSR, dutch and Polish registered boats. (to avoid the expensive taxes and safety inspections).
I'll report back on what happens if anyone is interested.

 

[ashtead]

It’s not quite as simple as that Greeny. If say I’m an insurer located in Belgium I would be regulated in Belgium by the BNB . In a pre Brexit world I could cover Uk located risks either under freedom of services or by freedom of establishment ie setting up a branch office in the UK. They are not mutually exclusive.
Ok so post Brexit the only way to insure in Uk is either to set up or apply to be a third country branch or to have a Uk company of course . So you either buy/create a subsidiary or apply under the temporary permissions regime for the branch to be registered in Uk and regulated by the FCA and PRA for solvency . I would say but haven’t checked a Uk registered vessel is located in the uk so the risk is located there. Clearly property is located where it’s built and cars where they are registered however for travel the risk is located where the policyholder is located. I mention just to show location of risk rules need understanding

In summary the insurer does not have to be based in Uk ie it can be a French,German or wherever in world you like located insurer but needs it needs a licence to insurer risks located in UK . It can of course have a fronting insurer in uk and then reinsure which is how you cover corporates with factories around the world etc.

 

[greeny]

It’s not quite as simple as that Greeny. If say I’m an insurer located in Belgium I would be regulated in Belgium by the BNB . In a pre Brexit world I could cover Uk located risks either under freedom of services or by freedom of establishment ie setting up a branch office in the UK. They are not mutually exclusive.
Ok so post Brexit the only way to insure in Uk is either to set up or apply to be a third country branch or to have a Uk company of course . So you either buy/create a subsidiary or apply under the temporary permissions regime for the branch to be registered in Uk and regulated by the FCA and PRA for solvency . I would say but haven’t checked a Uk registered vessel is located in the uk so the risk is located there. Clearly property is located where it’s built and cars where they are registered however for travel the risk is located where the policyholder is located. I mention just to show location of risk rules need understanding

In summary the insurer does not have to be based in Uk ie it can be a French,German or wherever in world you like located insurer but needs it needs a licence to insurer risks located in UK . It can of course have a fronting insurer in uk and then reinsure which is how you cover corporates with factories around the world etc.

Ok, thanks for the explanation.
So if the boat is in Portugal and the policy holder is in Portugal then the risk is in Portugal, so a Portuguese insurer should be able to insure it. Even though the boat is UK registered. Or do I misunderstand you.

 

[ashtead]

That in summary depends on where the insurer has a licence to underwrite risks and if a broker is involved where the broker is authorised to distribute.

 

[srm]

Having got fed up with continuous price hikes from my UK broker despite no claims since the 1970's I left them. Boat is UK part 1 registered and based in the Azores. As my boat is no longer of great value I followed the local practice and obtained 3rd party cover through a local broker. I do have a local address. However, an Australian resident friend with an Australian flagged boat went to the same broker and obtained cover. All they needed to see was the boats registration and Portuguese finance number (NIF).