If you’ve been dreaming of your own catamaran but your budget doesn’t allow for a new one, hurricanes can offer an unexpected opportunity – buying a damaged boat for a significantly lower price. This article is based on real-life experiences in the Caribbean, provides tips on how to do it, and provides detailed insights into the pricing and process.
Experience and recommendations for buyers
A boat owner shared his experience buying a catamaran that was damaged in Hurricane Barrel. He arrived in Carriacou (part of Grenada) about a week after the hurricane and found his boat thanks to another boat owner who wanted to sell his catamaran.
Here are the key tips he gives to potential buyers:
- Speed is crucial: To get the best price (what salvage companies pay), you need to be in the affected area within a week, preferably a few days, after the hurricane. Salvage companies move quickly.
- Budget: For the initial purchase, you should be prepared to spend approximately $35,000.
- Time: Be prepared to spend 1-2 months in search of boats.
- Location: Experience gained in Carriacou, Grenada. It is noted that it is a fairly sophisticated place in terms of amenities, which could make it easier to find deals compared to more developed locations. Grenada consists of three islands: Grenada, Ronde Island, and Carriacou.
- Target boats: Catamarans and newer monolithic boats (less than 10 years old) are in demand. Older monolithic boats are less competitive.
- Expected state: Be realistic. Reasonable damage includes a broken keel or mast. Avoid boats with both keels and all bulkheads broken, even if they are free.
- Repair costs and time: For a catamaran, count on $25,000 to $60,000 for repair and berthing fees. Plan 5-6 months at the work site, or 2-3 months, if you have a lot of experience. A new mast and rigging can cost at least $30,000.
Price insight for hurricane damaged catamarans
- General range: Hurricane-damaged catamarans were sold for 10-20% from their current selling value.
- Boat with $300,000 the sale value could be sold for $30,000 – $60,000.
- The level of damage does not always determine the lower or upper limit of this range. Boats sold through insurance are often sold at the lowest price.
- Completely destroyed boats: The 38-foot catamaran, completely destroyed, was sold for 5% from its selling value, approximately $10,000 (but the author wouldn't have wanted it even for free).
- Specific examples (repairable damage):
- 20 year old, 44 foot famous brand catamaran (value ~$250,000) with at least one broken keel and mast was sold through insurance for approximately $25,000.
- Approximately 20 years old, 43-foot catamaran (market value ~$250,000+) with a broken keel, bent rudder, broken mast (but dinghy and new outboard motor included) was sold for approximately $38,000The owner bought it back from insurance and tried to sell it for more.
- year, 40-foot famous brand catamaran (value $300,000 – $350,000) with at least one broken keel and mast was sold for approximately $50,000 from an insurance company (approximately 15-17%). It is noted that this deal was likely not available to an individual buyer.
- A few years old, 42-foot catamaran (value $400,000 – $500,000) was sold for more than $100,000 (20-25% of the sale value) after the owners waited and had several interested buyers.
The role of insurance and salvage companies
- If the boat is declared a total loss, the salvage company may make an offer.
- The boat owner can either accept the insurance payout (minus the salvage offer if the salvage company buys it) or buy the boat back from the insurance for the salvage offer amount and then try to sell it themselves.
- Purpose: As a buyer, you want to get the boat for the price that a salvage company would pay.
- Salvage company surcharge: If a salvage company buys a boat, it can sell it for 3-4 times the price, than paid. One example was someone who had to pay $80,000 for a boat that the salvage company purchased for approximately $25,000-30,000.
- Salvage companies can charge up to $15,000to put the fallen boats back on their racks.
How to approach boat owners
- Many owners would like to sell their boat to a cruising enthusiast who will love it, but they are also facing a stressful situation and want a quick, hassle-free sale.
- Be prepared with money (an escrow account is a good idea) and have a contract ready quickly to show that you are serious.
- Avoid asking too many trivial questions when the owner is trying to make a quick decision on a low-priced boat.
How to find potential boats
- Walk around marinas and boatyards often to see if the owners have returned.
- If you see a boat you like, search for its name online (Facebook, Instagram, Google) to find the owner.
- As soon as possible after the hurricane, post messages on cruise forums about the region where you are looking for a boat.
- Offer to help with hurricane relief efforts; this gives you a reason to be in the area and a way to make contacts.
Important considerations
- A boat damaged in a hurricane, even after repairs, will likely be worth less than the average market price when you eventually sell it.
- It is estimated that by spending $60,000 – $100,000 (purchase + repair) can get a boat worth approximately $200,000.
- Be careful who you talk to, as some people may have their own intentions.
What is a Hurricane Zone?
Hurricane belt is a geographic area in the Atlantic Ocean where tropical cyclones, or hurricanes, often form. This region extends from the west coast of Africa to the east coast of Central America, encompassing the Caribbean Sea, the Gulf of Mexico, and the tropical Atlantic Ocean. This area is characterized by warm ocean waters (above 26.5°C or about 80°F) and favorable atmospheric conditions that provide the energy needed for the development and intensification of these intense storms.
When is the most dangerous time?
The Atlantic hurricane season officially runs from June 1 to November 30However, the most dangerous and active period is usually:
- Peak months: August, September and OctoberDuring these months, ocean waters have reached their highest temperatures, which is a critical factor in hurricane formation.
- Highest activity: Usually observed from mid-August to early October, with a peak around September 10th.
During this time, it is essential to keep an eye on weather forecasts and warnings from local authorities if you are in the region with a yacht.
Where is the most dangerous and where is it relatively safer to stay with a yacht?
The most dangerous places are those that lie directly in the center of hurricane belts and have historically been in the path of frequent direct hits. This includes many of the Northern Caribbean islands, the Bahamas, Cuba, Haiti, the Dominican Republic, Jamaica, Puerto Rico, the U.S. and British Virgin Islands.
Relatively safer places (although there is never a 100% guarantee) are usually located outside the main path of the hurricane belt or further south, closer to the equator, where the Coriolis effect needed to keep hurricanes spinning is weaker. Popular choices for yacht owners during this period include:
- ABC Islands (Aruba, Bonaire, Curaçao): These islands are well south of the main path of the hurricane belt, and direct hits from hurricanes are very rare here. Bonaire is a famous sailing island, and all of the ABC islands have good marinas and launch facilities.
- Trinidad and Tobago: Trinidad, the southernmost island in the Caribbean, is considered one of the safest places to visit. Its proximity to the equator means that hurricanes rarely maintain their strength and rotation here. There are several well-protected marinas.
- Grenada and Carriacou: These islands are also located in the southern part and are considered relatively safe. Grenada has many shelters and a well-developed yachting infrastructure, including the marinas at Prickly Bay and Clarke's Court Boatyard & Marina, as well as Carriacou - Tyrell Bay, which is well protected from many winds.
- Costa Rica, Panama and Colombian coasts: Regions in southern Central America, such as the east coast of Panama, are also considered relatively safe because they are outside the main hurricane belt.
Important tips for yacht owners:
- Pull the boat out of the water: Many cruisers take their boats out of the water and place them in a secure boatyard on land. This is often the safest option, although the most expensive.
- Find the Hurricane Hole: These are well-protected bays, mangroves or straits that provide natural shelter during storms.
- Be ready to move: If you plan to stay in the region, be prepared to move quickly to a safer location if the hurricane changes direction or becomes dangerous.
- Insurance: Make sure your yacht has adequate insurance that covers damage caused by hurricanes.
Always carefully research the risks and available resources for your specific location before hurricane season.
