You're getting ripped off. $1MM liability and collision coverage in the entire continental united states for my F18 costs about $230/year (and yes, that includes sails).

Waterbug, I know it can be unaffordable to get insurance for going offshore, in any vessel. The solo ocean racers very rarely have full hull coverage, especially the mini guys. But the insurance exists, it's all about how deep your pocket books are and if a total loss on your vessel is recoverable for you.