Insurance on boat rentals

[NHBUOY]

DV is right. The marina rental owner's policy covers their OWN liability(butt).

If the renter requires or feels the need to protect his OWN ass-ets , a short-term liability policy CAN be purchased from your agent. Think airline short-term flight insurance.

I can see how a marina rental owner would "hedge" the answer to the liability coverage question. The answer doesn't have anything to do with coverage for the renter.

[Aldidonato]

All of the other boat renting marinas hedged their answer. Not to single out Anchor (they have been the most cooperative in their attempt to address the issue) but they commented that their insurance protects both them as the owner and their customer. When pressed, they could not explain how their insurance protects the customer.

As far as a short term liability policy, a la airline short term flight insurance, my agent, along with several other NH agencies, all state that such a policy for short term boat renters is not a coverage that is offered. In this case, I can assume that is accurate, because they make money by selling insurance, and none of them have anything to sell to me.

As far as an umbrella policy endorsement under my homeowners policy--I am told that is not available or possible because there is no boat coverage that is part of my existing homeowners policy. I am told that increased liability coverage under my homeowners only increases the coverage that is part of the base homeowners policy. Again, I tend to believe and trust this answer when I ask the question of insurance agencies that are in the business of making money by selling insurance.

[secondcurve]

Originally Posted by Aldidonato

All of the other boat renting marinas hedged their answer. Not to single out Anchor (they have been the most cooperative in their attempt to address the issue) but they commented that their insurance protects both them as the owner and their customer. When pressed, they could not explain how their insurance protects the customer.

As far as a short term liability policy, a la airline short term flight insurance, my agent, along with several other NH agencies, all state that such a policy for short term boat renters is not a coverage that is offered. In this case, I can assume that is accurate, because they make money by selling insurance, and none of them have anything to sell to me.

As far as an umbrella policy endorsement under my homeowners policy--I am told that is not available or possible because there is no boat coverage that is part of my existing homeowners policy. I am told that increased liability coverage under my homeowners only increases the coverage that is part of the base homeowners policy. Again, I tend to believe and trust this answer when I ask the question of insurance agencies that are in the business of making money by selling insurance.

I think you have summed up the issues nicely. There is significant liability risk when renting a boat. Major accidents don't occur often but they do occur so be aware of your liability exposure.

[ITD]

I was surprised at Anchor's response to the webmaster. Based on that, were I to rent a boat, they would be the first stop on my list. I did this exercise many years ago and was unable to find a boat rental where there was insurance, I don't think I contacted Anchor though.

[NoBozo]

Look back at my post #25. That being said: Be Alert, Be Defensive, and Be Competent. If you are Inexperienced in handling a boat ...which may include the ...I'M COOL..Not To Worry attitude.... GET Insurance that covers YOUR mistakes. The renter will NOT provide that protection for YOU. NB

[pjard]

If anyone reading this very active thread is looking to rent consistently over the season look into The American Boat Club on NH. I am a member only, not an owner or investor. It's the best deal on the lake, the boats are awesome, the staff is great...and relaxing with a cocktail at the Akwa Bar and Grill doesn't suk either (after boating of course). Really, do the math, I bet if you rent a boat 6-7 times over the summer you would save money...really.

[HellRaZoR004]

Originally Posted by pjard

If anyone reading this very active thread is looking to rent consistently over the season look into The American Boat Club on NH. I am a member only, not an owner or investor. It's the best deal on the lake, the boats are awesome, the staff is great...and relaxing with a cocktail at the Akwa Bar and Grill doesn't suk either (after boating of course). Really, do the math, I bet if you rent a boat 6-7 times over the summer you would save money...really.

I will second this based on a private message I received shortly after posting the initial question. I will leave it for the originator to explain if he so chooses but they appear to look out for its members.

[Diver Vince]

Originally Posted by Aldidonato

As far as an umbrella policy endorsement under my homeowners policy--I am told that is not available or possible because there is no boat coverage that is part of my existing homeowners policy. I am told that increased liability coverage under my homeowners only increases the coverage that is part of the base homeowners policy. Again, I tend to believe and trust this answer when I ask the question of insurance agencies that are in the business of making money by selling insurance.

Aldidonato..Well, I've spent some 38 years in the insurance biz, mostly on the claims end. The purpose of an umbrella policy is to up the limits of liability coverage under your HO policy, but IN ADDITION to fill in the gaps by providing coverage for other incidents like liability for rental purchases.

As with any insurance policy where the "rubber meets the road" is contained in the agreements. Under my Umbrella policy issued through Central Insurance Company it specifically states" Liability for bodily injury arising out of the maintenance,occupancy,operation, use, loading or unloading of such vehicle or craft by any person." This phrase comes under Aircraft liability, Hovercraft liability, RMV liability and Watercraft liability.

It is axiomatic in the insurance industry that any ambiguity in a policy of adhesion (which is what you contract is) is interpreted in favor of the policy holder.
So, I disagree with the individual you spoke to who gave you that advice. My advice to you, speak to a CPCU or better educated agent or broker.

[NHBUOY]

Hey DV, sent you a Private Message...

[rowinghelmet]

I've looked a few times for insurance companies that would provide a policy for a rental boat. I didn't have any success finding a carrier who would provide insurance for me when I rented a boat.

One option is to rent through BoatBound.co. BoatBound is a new peer to peer boat renting service that provides liability and comprehensive insurance which limits renters liability even for damage they cause.

[Diver1111]

One more thing I would like to add as we are discussing the risks of being in a situation without insurance.

It has to do with loaning your boat i.e. letting someone other than you (or a COVERED family member) pilot it. Many people (generally amongst friends) are asked to transport a boat to a ramp, from a ramp to a dock, or perhaps to help someone pull their boat in the spring or fall etc. all of which involve them driving someone else's boat or someone else driving theirs.

All of these situations put the owner in a potentially bad spot, rentals aside from this comment. This is my take but I could be wrong:

- If you drive someone else's boat and are involved in an accident, I assume you won't be covered because you are not the owner hence are not the Insured;
- The owner would not be covered because the driver is not a Named Insured;

In 2007 I did lend my boat to my brother for his one week stay on Squam but prior to that I had my Insurer add him as a Named Insured and I got that confirmation in writing. They went along with it no problem at all nor was there an extra charge from (BoatUS and their Insurer) to do so.

Many years ago I read something-perhaps in a boater course-that general maritime law/admiralty law makes the owner of the boat liable for acts someone else caused because that other person was piloting YOUR boat. And the fact you were a hundred miles away when it happened is no protection.

Ugly no matter how you look at it if there is no insurance protection (assuming you have enough to begin with). And the downside can mean massive personal financial responsibility for those involved who for whatever reason get no insurance protection for an incident.

[Greene's Basin Girl]

I have all my insurance with State Farm. They told me that anyone who drives my automobile insured by them is covered under my policy. I am not sure if that holds true with a boat policy. I would have to call them.

[upthesaukee]

Originally Posted by Greene's Basin Girl

I have all my insurance with State Farm. They told me that anyone who drives my automobile insured by them is covered under my policy. I am not sure if that holds true with a boat policy. I would have to call them.

People need to read their policies to be sure of their coverage, but one thing that most insurance policies specify is that if someone is using your boat/car/motorcycle with permission, they are covered.

Just remember, that if anything happens while this permitted operator is using your property, you are just as liable as if you were operating it yourself. This means that all your assets are exposed in the event of a large lawsuit. So, can you hear high limits of liability on your policies, an umbrella policy over the top of all your liability policies, and being very judicious in allowing others to operate these things.

Above all, read your policy and /or talk to your agent and make sure you have no questions about your coverage.