Are your Boat Docks and Lifts Insured Correctly?

Boat-by-Dock

By: IMT Insurance

With the recent storms in Northern Wisconsin, we have noticed questions arising in how coverage is put on boat docks and lifts.  Depending on where the docks and lifts are located and if they are stored, coverage may fall under Other Structures or Personal Property.  Below is a breakdown of how your docks and lifts should be covered.

Under the Homeowner Policy, a boat dock and/or lift may be classified under Section I – Coverage B or Coverage C property.  If the boat dock or lift in nature is not removed from the water and stored, then most likely it would be insured under Coverage B.  If it is removed from the water and stored, then most likely it would be under Coverage C.

If the boat dock and/or lift is permanently attached and not removed from the water to be stored and is ON the residence premises, it mostly likely would be considered Other Structures (Coverage B) on the Homeowner Policy.  Coverage B perils, along with the policy deductible, would apply.  Boat docks and/or lifts are not considered to be a building, and therefore would be covered as actual cash value.  Docks that begin on premises and extend off are considered to be on premises.

If the boat dock and/or lift is permanently attached and not removed from the water to be stored and NOT on the residence premises, it would need to be covered on an Inland Marine Policy.  The Inland Marine policy would be covered at actual cash value and policy perils/exclusions and deductible would apply.

The boat dock and/or lift can also be insured on the homeowner policy using the HO0492 Specific Structures Away from the Residence Premises endorsement.  This form provides coverage at actual cash value and would be subject to the policy deductible.  This coverage would not be an option if the boat dock/lift is rented or held for rental to any person not a tenant of the dwelling or from which any business is conducted.

If a lower deductible or water damage is desired for the boat dock and/or lift, it can be written on an Inland Marine Policy.  Water Damage means damage from surface water, waves, tidal water, overflow of body water, or spray from any of these, whether or not driven by the wind.

Liability coverage for boat docks and/or lifts (not rented to others) away from the residence premises must have the address listed on the primary homeowner’s policy under the Other Residence section.

R.S. Semler & Associates Insurance, Inc. has the resources to help you understand the confusion when it comes to purchasing insurance.  We have been providing peace-of-mind to Hartford and Washington County for over 50 years.  We represent only the most reputable and financially stable insurance companies, which gives our clients the protection they deserve.  We’ll be happy to talk you through the options.  Call us at 800-414-5875 or email us at info@rssemler.com.

Our offices will be closed on Labor Day (Monday, Sept 2nd)