A few days ago, a fire broke out at Ferretti’s Cattolica site on the Italian Adriatic coast – a 30-meter motor yacht under construction went up in flames; the fire department needed around 90 minutes to bring the fire under control.
Fortunately, nothing spread to other yachts; after all, work can be carried out simultaneously on 16 large yachts between 20 and 30 meters in length on 9,000 square meters of hall space. The pictures of the tragedy, in which no one was injured, were seen in numerous media.
But how can such a total loss be insured? And does a yacht under construction have to be insured by the buyer at all? If it is contractually agreed that ownership will not pass to the buyer until after the yacht has been handed over, no insurance needs to be taken out. If, however, it is agreed that a gradual handover will take place even after partial payments have been made, it is highly advisable to take out hull insurance for the yacht under construction.
This also applies if a boat or yacht is being refitted. In this case, the coverage of the existing hull insurance should be extended for the duration of the refit or repair work. Owners should also ask the contracted shipyard to show them the SRL policy.
Sandra Ahrabian, CEO of BAVARIA AG, says:
“It’s best to contact us before buying a yacht to clarify all eventualities. I also recommend existing customers who are planning a refit or minor repair work to make a brief phone or video call with our experts before.”
