Insurance on boat rentals

[Aldidonato]

I have a boat rental contract in front of me. There is no deductible stated. There is a damage deposit of $500 at the time the rental is picked up, and the renter is responsible for ALL additional damage costs to the boat. That is acceptable and understandable to me.

What troubles me is liability coverage and responsibility. I don't necessarily mind paying for damage to the boat I am renting, but in the case of damage or injury to others, the worst case being serious injury or death, I might be sued for millions, and that troubles me. In my mind the purpose of insurance is to protect against the big things, not the small things.

That is why I ask the question as to what are the dollar limits for coverage in the insurance paid for by the marina and for the benefit of the marina/boat owner.

The information alluded to by Anchor says they have insurance that protects their customers. I have spoken to Anchor directly and the answer as to what that really means was not provided. Their response was they have never had such a situation in all their years of renting, and that if everybody stayed 150 feet away from everything, I would be fine. I have called several other local marinas and insurance agencies to get a meaningful, specific answer. The responses I received indicate to me that none of them know the answer or they just don't want to tell me.

[AC2717]

Originally Posted by Aldidonato

I have a boat rental contract in front of me. There is no deductible stated. There is a damage deposit of $500 at the time the rental is picked up, and the renter is responsible for ALL additional damage costs to the boat. That is acceptable and understandable to me.

What troubles me is liability coverage and responsibility. I don't necessarily mind paying for damage to the boat I am renting, but in the case of damage or injury to others, the worst case being serious injury or death, I might be sued for millions, and that troubles me. In my mind the purpose of insurance is to protect against the big things, not the small things.

That is why I ask the question as to what are the dollar limits for coverage in the insurance paid for by the marina and for the benefit of the marina/boat owner.

The information alluded to by Anchor says they have insurance that protects their customers. I have spoken to Anchor directly and the answer as to what that really means was not provided. Their response was they have never had such a situation in all their years of renting, and that if everybody stayed 150 feet away from everything, I would be fine. I have called several other local marinas and insurance agencies to get a meaningful, specific answer. The responses I received indicate to me that none of them know the answer or they just don't want to tell me.

if you have a homeowners policy or a renters policy or a condo policy it has a liability limit, that is your personal liability limit as well, which in most policies, will cover you for driving a boat not for hire under a certiain length and weight, and respectful of local rules laws and regulations you will have to look at your policy.
Long and Short:
The marina would be covered by their own policy for liability and you would be covered under your own policy (agian the types listed above) for liability, unless the lawyers could get you covered under the marina's policy.

[Aldidonato]

The first thing I did when I thought of renting a boat was to call my insurance agent who provides my homeowners policy. I was told that my homeowners policy would not apply to a rental boat because I did not already own a boat. If I owned a boat and it was listed on my policy, I would be covered also if I rented a boat.

[LIforrelaxin]

This issue is complex. The reason no one will give straight answers, is because there isn't one defined by law nor has a clause ever been specifically put into a legal insurance agreement.

Now this surprises me because I know many airplane pilots whom carry insurance, and don't own planes. The Aviation industry worked with the insurance industry, and created a policy to to fit this issue of pilots who don't own planes but rent one to use every once in a while.

The problem is the Marine industry has never fixed this issue... There most likely is a problem with renting a boat, and getting into a serious accident. Because the Marina's insurance company isn't going to want to pay, your insurance isn't going to want to pay to replace something you don't know anyways....

Bottom line is their may be a loop hole here.......

[secondcurve]

Originally Posted by LIforrelaxin

This issue is complex. The reason no one will give straight answers, is because there isn't one defined by law nor has a clause ever been specifically put into a legal insurance agreement.

Now this surprises me because I know many airplane pilots whom carry insurance, and don't own planes. The Aviation industry worked with the insurance industry, and created a policy to to fit this issue of pilots who don't own planes but rent one to use every once in a while.

The problem is the Marine industry has never fixed this issue... There most likely is a problem with renting a boat, and getting into a serious accident. Because the Marina's insurance company isn't going to want to pay, your insurance isn't going to want to pay to replace something you don't know anyways....

Bottom line is their may be a loop hole here.......

I don't think the issue is as complex as you think. The amount of liability insurance carried is very straightforward. Further, it it is much cheaper to carry $25,000 of liability insurance per accident than it is to carry $1,000,000.

[ishoot308]

Originally Posted by secondcurve

I don't think the issue is as complex as you think. The amount of liability insurance carried is very straightforward. Further, it it is much cheaper to carry $25,000 of liability insurance per accident than it is to carry $1,000,000.

Maybe it would just be easier to buy a boat...

[Happy Gourmand]

Originally Posted by ishoot308

Maybe it would just be easier to buy a boat...

I agree!