Liveaboard boat insurance is findable for most full-time cruisers, but on an older boat or one worth less than $100,000 it usually takes a specialty marine agent rather than a standard insurer. That’s the reality of today’s market, and it’s the question we get asked more than almost any other.
We hear it constantly: cruisers who’ve found the right boat, only to discover that insuring it is harder than buying it. So we asked Ben Belyea, an underwriting manager who has spent 20 years in marine insurance, to explain what’s actually happening in the industry and what cruisers need to know to find coverage.
Why Cruisers are Hard to Insure
Cruisers aren’t your average boaters. They’re constantly in motion, venturing into international waters, exploring remote regions, and often living aboard full-time. That level of adventure comes with a unique set of risks, and many traditional insurers aren’t eager to take them on.
From an underwriter’s perspective, it’s a tricky equation: unfamiliar waters, limited repair access, increased wear and tear, unpredictable weather, and, in many cases, the boat being the owner’s sole residence. All this adds up to higher risk, and often, fewer options for coverage.
Shrinking Options, Rising Costs
In recent years, the boat insurance landscape has tightened significantly. Following a wave of catastrophic storms and climate-related claims, many insurers have pulled out of the marine market altogether. The result? Cruisers are left with limited options, and those that remain often come with:
- Geographic exclusions, especially during hurricane season.
- High deductibles for named storm damage.
- Strict maintenance and inspection rules that are hard to comply with while underway.
- Premiums that are double or even triple those of stationary boats.
A Cruiser’s Option
This is where working with a specialty marine insurance agent, like Global Marine Insurance Agency, can help.
Global Marine isn’t just another insurance broker. They specialize in covering boats, yachts, and cruisers with complex needs. And they understand the nuances of the cruising lifestyle and work closely with underwriters to find policies that actually fit.
By working with Global Marine, many cruisers have successfully secured coverage through Markel’s Cruisers program, one of the few U.S.-based insurance providers offering comprehensive plans for full-time, international cruisers.
Markel’s Cruisers Program
Markel is known for its flexibility and willingness to insure experienced liveaboards and long-distance sailors, especially when presented through a knowledgeable agent who understands how to make your case.
Markel’s key features include:
- Agreed value hull coverage (no depreciation for total losses).
- $75k minimum vessel value. Liability only is available for well-maintained lower value vessels.
- Personal effects and equipment coverage, vital for liveaboards.
- Worldwide navigation options, subject to pre-approval.
- Protection and Indemnity for 3rd party liability protection, essential for full-time liveaboards who have guests or workers on the boat.
- Tailored underwriting, factoring in your route, vessel, and experience.
The Broker’s Role
That said, even Markel has its limits. Policies vary based on location, and hurricane zone restrictions still apply. The application process can be detailed and daunting, but here’s where a specialty agent like Global Marine shines.
They’ll help you:
- Prepare a strong application.
- Understand and navigate the fine print.
- Secure coverage tailored to your cruising plans.
Know the Gaps: Read the Fine Print
Even with solid coverage, beware of common blind spots:
- Named storm clauses that limit payout if you’re not in a designated safe harbor.
- Excluded regions that change seasonally.
Bureaucracy, Experience Requirements & the Reality Check
Markel requires:
- Detailed sailing résumés showing offshore experience.
- A detailed cruising itinerary.
- A current SAMS (Society of Accredited Marine Surveyors) or NAMS (National Association of Marine Surveyors) condition and value survey & standing rigging inspection.
- Safety equipment like EPIRBs, life rafts, and fire suppression systems.
Final Takeaway: Don’t Go It Alone
If you’re a full-time cruiser, or planning to become one, boat insurance isn’t just a formality. It’s a safeguard for your home, your safety, and your freedom. And in today’s tightened market, working with a specialist like Global Marine Insurance Agency can make all the difference between getting decent coverage, or none at all.
The ocean may be unpredictable, but your insurance doesn’t have to be. Be informed, plan ahead, and find the right partner to help you protect your dream.
Ben Belyea has been with Global Marine Insurance for 20 years in various underwriting roles and is currently the VP, Underwriting Manager for the Boat/Yacht team. Ben has extensive boating experience owning and operating several sized boats and yachts and exploring the Great Lakes region from home in Traverse City, MI.
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