By Betty Vedrine, Senior Guardian Reporter

The kink in the plan to attract American boaters to the growing number of berthing spots in The Bahamas may be insurance underwriters unwilling to extend coverage even 50 nautical miles off the Florida coast. It appears that American companies are hesitant to provide insurance coverage outside of the United States, and those that do offer it at a premium.

According to a representative at Overseas Insurance Agency Inc., a recent quote produced for owner of a $750,000 yacht (modest by boating standards) came in at $12,000. That yacht was berthed in Florida. Similar coverage for the same boat but berthed in The Bahamas would carry a $20,000 price tag, she said. That $8,000 difference reflects the increasingly small pool of American underwriters willing to cover internationally berthed yachts.

That's not necessarily good news for a country set to double the number of slips, with a heavy emphasis on large, or mega, yachts.

The American customers we hope to draw will generally face insurance rates significantly higher than those in the U.S., given that international underwriters will, in most cases, have to step in to provide coverage.

"Insurance rates are generally set based on your cruising ground," said Mike Anderson a director for the American Boating Association, which has a membership of 50,000. "One company wanted me to be out of hurricane territory during the season, but another didn't.

"It's anecdotal, but I have no idea why The Bahamas would be priced differently from Florida, perhaps because there's no way to hide if a storm hits."

He believes insurance rates have gone up across the board since Hurrican Katrina, pricing some boaters out of the market.

"I think that in most of coastal Florida the rates have gone up as a function of the losses incurred as a result of Katrina and they simply haven't come back down," he said.

The difference in premiums between Florida and The Bahamas may seem modest relative to the astronomical prices attached to the crafts themselves. Still, it may be enough to deter some yacht owners wishing to use one of the over 70 operating marinas across the country as their home base. Several more are expected to come on stream over the next five years.

Earl Miller, head of vertical markets for the Ministry of Tourism argues that we will continue to attract wealthy Americans.

"Although we are reeling from the loss of fishing boats coming to The Bahamas due to increase in fees and the increase in entry fees implemented a couple of years ago, we will have to wait and see if an increase in insurance premiums would deter boat owners from coming to The Bahamas," he said. "We are still attractive to boat owners because of our location."

More than that, Florida yacht owners may simply have little choice but to sail our way given legislative changes in the Sunshine State.

Very few new licenses are being issued for new marinas in Florida, said Miller. "Presently, there is a moratorium on marina development in Florida, making The Bahamas very attractive to boat owners wishing to berth their boats here."