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High-net-worth individuals choosing to rent—not buy—superyachts

With annual costs of operating a 180-foot vessel as high as $4.75 million ultra-high-net-worth individuals are turning to charters. What does this mean for their insurance considerations?

By Polly Mosendz | Updated on April 15, 2016

(Bloomberg) — Lounging in the Caribbean aboard a beautiful, 100-foot superyacht sounds pretty great, but it might be hard to relax when you have a hefty engine repair bill to pay and crew payroll paperwork to review. The annual cost of operating a 180-foot vessel is $4.75 million, or about 10% of the yacht’s original cost. With high maintenance costs in mind, ultra-high-net-worth individuals looking to explore the high seas are increasingly turning to charters.

According to “The State of Wealth, Luxury and Yachting” report released this week by researcher Wealth-X and yacht management and sales firm Camper & Nicholsons, ultra-high-net-worth individuals, defined as those with a minimum net worth of $30 million, took 21% more charters in 2015 than in the year prior.

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