Luxury yacht owner denied insurance coverage to remove grounded boat from Maui’s Honolua Bay

HONOLULU (HawaiiNewsNow) - The state’s efforts to recover $460,000 in expenses for the removal of a grounded luxury yacht at Maui’s Honolua Bay have hit a snag as the owner’s insurance company has denied coverage.

Jim Jones, the owner of the yacht Nakoa, confirmed in federal court that the insurance company denied coverage and that he has hired a bankruptcy attorney.

This leaves the state uncertain about who will pay for salvage and reef repairs.

Jones is representing himself in a lawsuit filed by his investors, who are seeking more than $2 million in damages, alleging that he violated his contract when the yacht ran aground in February.

Jones has denied any negligence.

The Nakoa, which had been used for luxury charters, was removed from the reef in March after being stuck for more than a month. The grounding caused significant damage to the reef, and experts say it will take years to recover fully.

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