Private Boat Rental Charter Guide - #3 PART
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- #1 PART - The expenses factoring in the rental a boat for exclusive use
- #2 PART - The additional expenses when renting a boat for private rental
- #3 PART - The security deposit and insurances on boats for private charter
- #4 PART - The types of boats available: when and how to rent exclusive charters
In the #3 Part of our Private Boat Rental Guide, we discuss Security Deposits for yacht charters with or without a skipper. Learn how to pay, insure, or even eliminate the deposit. Join us to make the most of your private boat charter.
What is the Security Deposit, and why is it necessary for a private boat charter?
For most private charter rental, a security deposit is mandatory, just like when renting a car. But what does it really entail
Private boat charters can be a fantastic way to enjoy a luxurious and personalized experience on the water. However, before embarking on a private boat charter, it's important to understand the concept of a Security Deposit, which is a vital component of most yacht charters, whether with or without a skipper.
All yachts are insured to cover potential damages to the boat itself and to protect against damages to third parties. This insurance is comprised of two distinct types: all-risk insurance and liability insurance. However, there are certain stipulations associated with this insurance, including a franchise, or exemption to damages covered. Additionally, there is a minimum amount that must be paid to the insurance company in the event that a dispute arises.
The deposit will be unlocked automatically or manually after the disembarkation and the final check-out of the boat if no damages, losses, or fines occurred during the charter rental period. In cases where damage has occurred, and the insurance needs to be involved, or a quotation for repairs is not immediately available, the timing for the release of the Security Deposit will be significantly delayed. It's often advisable to try and reach an immediate accord with the other parties involved or call your agency to help sort out any issue.
For example, Intersailclub has managed several negotiations in recent years with related charter companies, even by sending a qualified nautical surveyor to assess the damages.
This franchise is commonly known as the Security Deposit in the yacht charter industry. When chartering a boat privately, with or without crew, if the boat is chartered with a bareboat charter contract*, you will be asked to cover this amount. The Security Deposit is designed to cover any damages to the boat or loss of equipment on board during the rental period, up to a maximum amount, which varies based on the size and model of the yacht, typically ranging from €1,500 to €5,000.
It's important to note that the charterer of the boat, i.e. the person signing the charter contract or agreement, is considered responsible for any damage, loss of equipment, or fine that can be levied during the rental period. This is particularly relevant for bareboat charter contracts. This also extends to any damage caused by the professional crew, as they are (by contract) hired by the charterer and not by the owner of the vessel. In fact, the overall charter industry runs with two main types of charter contracts.
Overall charter industry runs with two main type of charter contracts:
Bareboat charter agreement when the client, as the charterer of the boat takes the boat bareboat, i.e. without crew and with just the standard safety and general equipment on board, for a specified time, to and from a specified location and will be responsible for the boat in all aspect, leaving a security deposit as guarantee. The charterer in this case will be responsible for any damage on board, even if he should hire a crew to conduct the boat, since they will be employed by the charterer and not by the owner of the boat.
Rental charter agreement when the client, as the charterer of the boat, takes the boat with mandatory crew onboard, with standard safety and general equipment, but also with some less standard optionals. In this case, usually, no security deposit will be needed as the crew is hired by the owner of the boat, and special insurance will cover any structural damages. Boats running under rental charter agreements are usually from the medium to the luxury sectors, with costs for the rental being in the medium/high range.
On another level are private boat owners, in fact when the client takes the boat from a private owner, who usually will be present on board or have a trusted person hired for the conduction of the boat. For this reason they will not be asking for a security deposit, keeping in mind that while no deposit is requested, damages or losses of equipment caused directly by the people on board will still be considered their responsibility.
What is the insurance on the Security Deposit or Damage Waiver?
Security deposit insurance can usually also be taken out to reduce the maximum amount attributable to the renter for damage and loss of equipment.
Usually, the insurance costs 10% of the security deposit and must be paid upon embarkation. The amount is non-refundable and is not an advance payment for damages or losses during the rental period, as it is the cost of the insurance for the reduction of the security deposit, generally to 20% of the initial amount.
For example:In case of a security deposit of €3,000, the cost of the insurance will be €300, non-refundable. The amount of the security deposit is lowered to €600 (refundable at the end of the rental) and this new amount is the maximum that can be requested to cover any damages.
What are the accepted payment methods for a yacht rental?
Book with confidence your exclusive charter rental through Intersailclub, as all payments made online through the platform are secure payments. In fact Intersailclub, chooses Stripe as credit card service provider, which is a leading company worldwide. Yacht charters can be paid online through wire transfer, credit card (also debit and prepaid), paypal and in the near future, Intersailclub plans to allow payments with crypto values to further expand its horizons to new opportunities for the customers.
Yacht charters can be paid online through wire transfer, credit card (also debit and prepaid), paypal and in the near future, Intersailclub plans to allow payments with crypto values to further expand its horizons to new opportunities for the customers.
Additional cost, obligatory extras, services on request and crew are more readily paid on spot often with either credit card or by cash.Payment installments are divided in:
- 50% down payment to confirm the boat charter rental
- 50% balance payment, 40 days prior to departure date.
Depending on the type of charter, crew and extras can either be paid upon embarkation or settled through online payment prior to departure.
In most cases, security deposits are required to be paid through a Visa or MasterCard credit or debit card, while American Express is rarely accepted. It is rare for checks or cash deposits to be accepted for this type of transaction. However, it is always recommended to inquire about any exceptions that may be useful for the success of your planned holiday before securing your boat.
Was it helpful? If you'd like to learn more, we've included links to know more about related topics!
#1 PART - The expenses factoring in the rental a boat for exclusive use
#2 PART - The security deposit and insurances on boats for private charter
#3 PART - The additional expenses when renting a boat for private rental
#4 PART - The types of boats available: when and how to rent exclusive charters
Intersailclub team can help you find the perfect boat for your holiday, tailored to your budget.
Contact us for a free quotation and let's make waves together!
