WakezoneINS

Figured this would be a good topic given that we're in the "off season" and the majority of people have their boats in storage for the winter. I want to address some misconceptions that I hear often with respects to winter storage.


#1 - "My boat is stored in my garage (in my barn, in a building on my property, on my lift at my dock etc) my homeowners insurance policy covers my boat...."

The harsh reality is that your homeowners policy, no matter how great you think the policy is, doesn't cover your performance boat while it sits on your property or in your building/garages. A standard home policy will cover watercraft up to $1500. For some of you, this doesn't even pay for the steering wheel! The ONLY time an insurance policy would cover a watercraft for storage on the property anywhere, would be if it were specifically endorsed and added to the policy and an additional premium paid for that endorsement.

#2 - "My boat is stored at a marina, in a public storage facility. If something happens to my boat, their insurance will cover it..."

Sure, it might cover it if the secretary remembered to pay the premium that month or you didn't sign an agreement stating that you would hold them harmless in teh event of damage to the boat while it was in their care custody and control. If your boat is stored for the winter and is on someone else's property or in their Care, custody & control, make sure your insurance policy is in force because there is no guaranteeing that they have the correct coverage or even have coverage to cover the damage that may occur to your boat.

#3 - "A lay up on my insurance policy means there is no coverage."

This is only partially true. A lay up is a credit that is given on a marine policy that gives you credit for not using the boat on the water during a designated period of time. However, during that designated period of time, the boat is still covered for storage and transit exposures in accordance with the terms of the policy.

#4 - "I don't need insurance in the off season, I'm not using my boat."

I forgot, damage only occurs to boats from April to September. Roofs don't collapse from too much snowfall, buildings don't burn etc in the winter time OK... enough sarcasm, you get my drift! Carry insurance year round!

Sydwayz

iTrader: (1)

Curiousity question:

How is "layup" defined more specifically. If "not using the boat on the water" is the language...

...what if I have the boat layed up in storage on a lift OVER the water, and lift fails? The boat is going to end up in the water, even though I'm not using it.

Just a hypothetical, not my case at all. Just wondering how that might shake out.

WakezoneINS

It would be covered if there were damage because it is a storage exposure. You weren't actively running the boat on the water aka "using the boat". Hopefully that makes sense.

Here is how it reads in a policy:

This one is from the general conditions section of the Markel policy (MHY5001-0108):

1. d. If 'Lay-Up' is shown on the Declarations Page, during the lay-up period shown:
i. If the Declarations Page indicates that lay-up is afloat, then the insured yacht must be in a safe berth for storage and the insured yacht may not be operated except as required to change berths within the immediate berthing location. However, if you are required to move the insured yacht for the purpose of safety, repairs and alterations or for betterments and improvements, coverage will not be suspended.

ii. If the Declarations page indicates that lay-up is ashore, then the insured yacht may not be afloat. An insured yacht on a permanent lift or hoist will be considered laid up ashore if it is out of commission and properly winterized.

WakezoneINS

Was searching for something else and ran across this that I wrote awhile back.. good info given that some of you are heading into your off season sooner than you wish