Protecting Your Investment: Why Marine Insurance is Essential Even When Your Boat is Safely Stored
When boat owners think about marine insurance, they often picture coverage for accidents on the water or damage while docking. However, most storage facilities require that you purchase a policy from an insurance company and will require you to have a policy in place. Understanding these requirements is crucial for any boat owner seeking professional storage services.
Why Storage Facilities Require Marine Insurance
Boat storage facilities face significant liability exposures, which is why every marina used both wet storage and dry storage required proof of insurance on file or you were gone. Storage facilities are often hesitant to provide coverage for things that can go wrong with a boat in storage, as they are not responsible for associated risks. For example, if you rent a storage unit and the unit burns down, the storage facility will not be held responsible for your loss.
The reality is that your uninsured boat is a huge, floating liability. A simple mistake while docking, an unexpected fire, or a fuel leak could trigger a chain reaction of damage, leaving them with a massive bill. Because of this risk, it’s standard procedure for nearly every marina to have its own strict boat insurance requirements.
Common Insurance Requirements at Storage Facilities
Most boat storage facilities have specific insurance requirements that owners must meet. Boat owners should have adequate limits of both property damage and liability insurance and name the marine facility as an additional named insured. Additionally, many marinas and yacht clubs require a certificate of insurance each year to maintain access to slips or facilities.
For more comprehensive facilities, requirements can be quite specific. For instance, permittee is required to maintain Boat/Watercraft Liability insurance providing coverage for legal liability resulting from the ownership, maintenance, or use of insured watercraft while stored ashore, which shall also include bodily injury, property damage and legal defense coverage. This insurance shall have a per occurrence coverage limit of at least $300,000 unless otherwise approved by the District.
Risks That Persist During Storage
Many boat owners mistakenly believe their vessels are completely safe while in storage. However, plenty of threats exist on shore that your boat insurance can cover like fire, theft, vandalism, and damage from winter storms and other weather-related problems. A fire at the storage facility could damage your boat. A winter storm could knock a tree down in your yard and crash into your watercraft.
Active boat storage facilities mean lots of workers and visitors – making it an easy target for theft or vandalism. Boat insurance could cover you in the event that your boat is damaged or stolen, but you should make sure to check with your insurance agent first.
Financial Considerations and Coverage Options
The financial stakes are significant when it comes to boat storage. The value of a stored boat or RV is often much higher than that of personal property typically stored in a self-storage unit. In fact, it can easily exceed $100,000. This high value makes adequate insurance coverage even more critical.
For boat owners who want to save money during storage periods, ask your insurance agent if they offer what is commonly referred to as a “lay-up” discount. You have year-round coverage with a discount for the months your boat is in dry storage.
Lender Requirements
If you’ve financed your boat purchase, insurance becomes non-negotiable. For boat owners who financed the purchase of your boat and still have a loan with a bank, boat insurance will be required for the life of the loan. Even once you pay it off, it’s still recommended to maintain coverage.
Professional Storage Solutions
When selecting a storage facility, it’s important to work with professionals who understand these insurance requirements. Companies like legacy motor and marine, based in Port Jefferson Station, NY, specialize in providing secure storage solutions for both automotive and marine vehicles. Based in Port Jefferson Station, NY, we recognized that collectors in Nassau and Suffolk Counties needed a storage solution that matched the caliber of their investments. Every climate-controlled bay, every security protocol, and every service offering reflects our commitment to treating your prized possessions with the same care you do.
Best Practices for Boat Storage Insurance
To ensure you’re properly protected, consider these essential steps:
- Verify Coverage Continuation: If you plan to store your boat during the off-season or evacuate inland during storms, make sure your coverage still applies
- Understand Facility Limitations: Storage facilities are not required by law to carry homeowner’s or renter’s insurance, so it is highly recommended that you purchase coverage for your belongings
- Consider Comprehensive Coverage: Comprehensive Coverage covers non-collision-related incidents such as theft, fire, or natural disasters, making it a great choice for boats or RVs in storage
- Secure Storage Benefits: The storage location also matters; storing your boat or RV in a secure, indoor facility may lower your premiums compared to outdoor storage. Many insurers offer discounts for boats and RVs stored in secure, monitored facilities
Conclusion
Marine insurance requirements for boat storage facilities exist to protect both facility operators and boat owners from significant financial losses. Rather than viewing these requirements as an unnecessary expense, smart boat owners recognize that proper insurance coverage is an investment in protecting their valuable assets. Whether you’re storing a weekend fishing boat or a luxury yacht, maintaining appropriate insurance coverage ensures you can enjoy your vessel for years to come without worrying about unexpected financial setbacks.
By working with reputable storage facilities that understand and enforce proper insurance requirements, boat owners can have peace of mind knowing their investment is protected both on and off the water.