Insurance on boat rentals
 

Does anyone know how to acquire insurance on a boat rental?

It comes with the boat when you rent it. I would not leave the dock without it if I was renting. I believe you still have a high deductible, but it may vary between places.
I've heard some real horror shows about renters and rocks on the lake.
The cost can add up really quick as you pay MSRP on all damaged parts plus labor cost to repair, not like you can go on line and look for the lowest prices.
Good luck, be safe.

Umbrella Policy
 

It will be wise if you have a family, you have an umbrella policy that will protect your love ones whan you rent a boat. Rental boat insurance may not carry the liability if, God forbid, you need it.

I would check with your own insurance carrier....might be cheaper to get a ryder through them.I never take the very expensive optional insurance on car rentals because most policies cover the rental.

I have rented several boats on Winnipesaukee in the past where I specifically asked if there were any insurance on the boat should I damage it. In each case I was told no there was no insurance, I was responsible for any and all damage.

Caveat Emptor.....

Property damage wouldn't be my major concern. How much damage can you do in a terrible accident? $10,000 - $20,000? These are big dollars but not life changing amounts. The real concern is liability. If you kill someone or severely injure someone the liability could be easily be in the seven figure range. Take Broadhopper's advice and make sure you have a good umbrella policy in place.

We do not rent boats but I do talk to a lot of people and it is my understanding that no rentals have insurance for damage that is caused by the renter. I could be wrong.
We insure our members heaven forbid something happened or in the event of damage..

Then things changed, I know it was optional at one time.
OMG that means rental boaters are even more of a hazard on the lake, they don't have insurance :eek: :eek::emb::(

This is kind of scary if you think about it some.

Isn't this where your "uninsured boater" coverage plays?

I'm not sure about playing :D but since we are on the subject does NH still not require insurance on automobiles?
If so of all the things that need fixing in this state, that should be the number 1 priority. I could never understand how any state could not require some sort of insurance.

Last I knew, insurance on autos is still not required in NH. However, if you have an accident, you then have to carry it. I was told by an insurance agent that something like 39% of drivers in Fl don't carry insurance on their cars. And insurance is required in Fl. So it is like all other laws, isn't it? Laws are made for those who don't need them.

IMHO the way it should work is like this. First you have to get insurance before you can even register your automobile. Then if your insurance is canceled your registration on the car is revoked and you must turn in your plates.
Not requiring insurance is just ridiculous.

New Hampshire Financial Liability Law
 

If you don't carry auto insurance you have to demonstrate you can cover the costs of an at fault accident at the minimum limits required. Same law in Florida.

How do they enforce that?...I know someone that doesn't have jack sh** to their name and got in an accident w/out insurance. He was out of luck and the other person was glad to have full coverage. This person is now required by the state of NH to have insurance.

This is from the Florida DMV. I'm not sure what NH or Florida do to enforce the law.

There are several ways you can establish financial responsibility for your vehicle(s):

Purchase a liability insurance policy from a carrier licensed to sell insurance in the state.

Post a surety bond with a state-licensed company and obtain a Financial Responsibility Certificate from the Bureau of Financial Responsibility.

Deposit cash or securities with the FDHSMV and obtain a Financial Responsibility Certificate from the Bureau of Financial Responsibility.

Provide evidence of possessing a net encumbered capital and obtain a Self Insurance Certificate from the Bureau of Financial Responsibility.

However, you may be forced to carry liability insurance if you have:

Been involved in an accident.
A conviction for driving under the influence of alcohol or drugs.
Multiple reckless driving convictions.
A traffic violation conviction that triggers a review.

It just boggles my mind that this state works the way it does sometimes.
Absolutely no accountability for those without until something happens.

"How do they enforce that?" They DON'T until someone either has an accident, or gets stopped. That is why there are so many people in Fl. driving around without insurance even though it is required. This is why I say laws are made for those who don't need them. You and I wouldn't think of driving around without any insurance.

What do you mean? All this state has to do is make it mandatory. Then if you do not have it and you get stopped for any reason you are in violation.

I'm sure EVERY state has drivers riding around who are uninsured. But to have a state that openly says you do not need insurance is just not right.
You are always going to have those who choose to ignore the rules. By making it a requirement you at least will bring many into compliance, or the honest ones anyway.

Wow, am I glad to see this discussion. I live in FL. And have rented a boat from a reputable marina on the lake for a two week period this summer. I can not obtain insurance from the marina or private insurance agencies, either for damage to the boat or for personal liability (which is more important to me). It seems, based on numerous phone inquiries I have made, that insurance agencies and marinas other than the one I am renting from, do not understand the question that I ask about liability insurance.

I am a "good citizen", I want to especially purchase liability insurance, but it is not offered. I first called my local Florida company that carries my home owners and asked them how to protect myself, they said my homeowners does not cover me because I do not already own a boat. Further, there is no umbrella coverage that would apply because an umbrella only applies if you already have coverage that applies. An umbrella policy seems to be a misnomer as it would only serve to extend the dollar limits for a policy that already covers the situation. Since I do not already own a boat, there is apparently no way I can protect myself and others for liability stemming from the boat I have rented.

I have been told by multiple New Hampshire insurance sources that I have spoken to that the boat owner (in my case the marina renting me the boat) is required by the state to carry liability insurance and that I do not have to worry about liability. This is not a response that makes me comfortable. On the one hand I am pleased that there seems to be liability coverage in place but it does not aide me as I am seeking to put coverage in place that protects me as a renter, not an owner. I know that if I were injured by a rental boat I would sue the owner and the driver.

Does anybody know of an insurance agency that I could purchase liability insurance from?

Try Anchor Marine. Instead of speculating I contacted Bob Andrews and received this reply:

Physical damage is still your responsibility but the rest is covered at Anchor Marine. This doesn't necessarily apply to all boat rental facilities.

I wouldn't assume the rest is covered by Anchor Marine or any other marina. It all has to do with the amount of coverage. For example, if Anchor has $250,000 in liability insurance and you are worth $5,000,000 when you hit someone and cause bodily damage they are going to sue both of you to maximize their recovery. It is interesting Anchor didn't respond with the amount of liability insurance they carry.

I don't think they needed to respond to my general question with specific policy information. If you want to know the amount of coverage why don't you contact them and ask them instead of speculating?

Were I to rent a boat from Anchor or anyone else, I would want to be sure that the insurance they carry covers the customer also if I were to rely on it. My guess is that it doesn't. A business owner would have to be nuts to rent something like a boat without insurance coverage (liability) for themselves. I would be interested to know if I rented a boat that the business's insurance also provided me, the customer, liability protection. Probably not, but maybe I'm wrong. Once again, caveat emptor.


Edit, just reread Don's post, Anchor does say customer as well. In this case Anchor should be able to provide proof of insurance to the customer as a matter of standard practice, much like a contractor will provide proof of insurance should you ask. If you are concerned about being covered, ask and ask for proof. I'm sure marinas that provide insurance will provide the details to you. I never rented from anchor.

Back in the late eighties I was renting an airplane two or three times a week while taking flying lessons. I had always assumed the plane AND I were insured. Eventually, I joined AOPA (Aircraft Owners and Pilots Association) and discovered that as a aircraft Renter, I could buy liability and property damage insurance for myself for about $150 a year through the association. My flight instructor had never mentioned it. :look:

So I asked the rental company if I needed this and they told me... WE don't require it but It's a REAL Good Idea, because their insurance only covers the plane & rental company and not the pilot.

A few days later I had the renters insurance. :) NB

I certainly appreciate all of the discussion and response but I perhaps need to restate my specific problem/question. I am renting a boat, the marina I am renting from has liability insurance that protects them (not me). I am really not so much concerned with paying for damage to the boat I rent, but am quite concerned with paying for injury to people who might be injured.

I want to purchase liability insurance that will protect me directly.

Does anyone know of an insurance company that they have used to obtain this sort of coverage? I look forward to giving that company my money, but so far no one wants my money.

I have contacted the agency that insures the marina, and they say there is no such insurance available that they know of. So I have spent many hours calling others, the big companies, the small ones, others local to Winnipesaukee and all say that as far as they know, no such insurance is available and that they have not been asked this question before. It seems that if I rent a boat, have the unfortunate accident and others are injured---that I might be sued and lose all that I own. That is not an acceptable risk to me, and I find it hard to believe that all who have rented a boat before me have done so with no insurance.

For now, thanks to all..........

What about your homeowner's insurance company? Maybe contact them and they could shed some light on the matter?

I did that first. Coverage under my homeowners policy does not extend to a rental boat unless a boat I already own is part of that policy. There is no umbrella coverage for the same reason........

Did you read my post where Anchor Marine said "we do carry all the insurances to include liability, personal injury, comprehensive etc." It doesn't seem like their renters go out with "no insurance". Instead of speculating why not contact them and ask them for more details?

Seems that the company you intend to rent from may not be the place to rent since they do not provide the insurance coverage you need. Nor does it seem the insurance companies offer what you are looking for to an individual.
Time to choose another boat rental company. The Webmaster made a very good suggestion. Talk with Anchor. It cannot hurt and maybe they will have the boat you are looking for. Sometimes change is a good thing.

Maybe I'm confused, but I rented a boat a few years ago (was it two or three years ago?) and I thought I purchased rental insurance from them (it was an extra fee). They highly recommended it as I remember them telling me if I hit one rock it could cost me a lot just to pay for a new propeller (if I was lucky and only damaged the prop). So I should pay for the insurance.

I remember thinking, that's a small price to pay and did pay it, then spent the rest of the day making sure to keep as clear from the Witches as I could be! LOL

So now, after reading the posts here I have to wonder if I was mistaken?

I forget the name of the marina, but I'm pretty sure it was near Meridith.

Hmmm... now checking their website (Meridith), its seems they now require a $1,000 security deposit and say that the renter is responsible for the costs of any damage, even if its over the amount of the security deposit.

So either things have changed, or my memory is going and I was mistaken.

What else is it that goes when you start to get old, I forget that too! :D

Obviously checking with Anchor is a good idea, but you would have to read their policy to be absolutely sure.

I would call my insurance agent and ask them about a general liability policy that covers me for any unforeseen risk. Unfortunately this is a complicated policy. You will need to know a lot about all you current policies and maybe even adjust them. Some people call these umbrella policies because they cover between the gaps and above the limits of your current policies.

This won't be a specific policy for a rental boat but a policy against all risk. It also won't protect you against property damage to the rental boat. If your agent can't help you, keep trying someone will. Traveler's and GIECO have umbrella policies on their websites, check them out.

I would call Anchor and ask them about what their insurance covers, they should be willing to copy you on their policy so you can see for yourself. I think boat rentals by their nature would be a high risk for an insurance company. While I'm sure you are an expert boater, most of the renters I have seen are far from expert. Since you are concerned about liability an umbrella would probably be a worthwhile cost for you. Unless specifically excluded an umbrella should protect you. But I wouldn't expect to be able to get one for a 2 or 3 week period so you can rent a boat. Also, having a young driver or two substantially lowers the amount they are willing to insure you for, voice of experience here.

Limitation of Liability Act?
 

I know nothing about this but found it quite interesting. Read #5 and #6,...

http://www.boatrenting.com/client/fa...businessqa.asp

Thoughts?

Dan

Linkity links???

I have put in an inquiry to Anchor to find out how much liability insurance they carry on their rental boats. I will post their response when it arrives.

My point in responding to your comment was to inform folks that being told that someone carries liability insurance in itself is meaningless. It depends upon how much coverage an individual carries. For example, recently in the Boston Globe there was a multi-day article about the cab companies in Boston and how they are only required to carry $10,000 and $20,000 in liability insurance by the city of Boston. What this means is their liability is limited to $10,000 per person per accident capped at $20,000 per accident. The article went on to highlight numerous accidents that occurred in Boston over the years and how people who were injured or families of people who were killed were essentially out of luck when tragedy struck. As a result of the article, it appears the city will change the requirement for minimum liability insurance to a more meaningful number.

Finally, given the cost of liability insurance my educated guess is that many of the boat rental businesses on the lake carry scaled back coverage that will do little to protect you should you injure one of your passengers or someone in another boat. I don't mean to speculate, rather I am trying to inform folks of the risks they face when renting a boat and my point is the risks far exceed the cost of the boat itself.

So I will ask the same question as another thread. What's the insurance coverage?

In the earlier thread concerning this topic I pointed out that many marinas are likely underinsured. The marina discussed in that thread was Anchor. At the time, I called and emailed Anchor to get an understanding of the amount of liability insurance they carry. No one ever bothered getting back to me from Anchor which tells me they likely carry limited insurance. As a result, I wouldn't recommend renting from Anchor and I'd be certain to check insurance amounts carefully when renting from any other marina.

Anchor Marine responded right away to my question about insurance:

Did you get a better answer from other boat rentals companies you contacted?

Anchor Marine is not, and never was the issue, and it is not fair that only they be singled out. At least they have tried to respond to the issue. To their credit, they remain the only marina that has attempted to answer the question. Are there other marinas that care to respond and attempt to clarify?

The key question is how does the insurance paid for and caried by the owner of the boat "...protect the customer as well..." as stated by Anchor ?

State law requires the owner of the boat to carry certain insurances. As the named owner of the insurance policy and boat, they are in compliance and protected.

The renters liability is still not addressed. How is the customer protected ?

I would suggest that you directly contact the marina where you intend to rent. I feel confident in saying that the marinas on the lake who rent are well aware of the liabilities associated with the practice of renting and take every measure to protect themselves and the renters in such a manner as to lessen the probability of litigation. If the renter operates the boat in a safe and legal manner, observing all the laws applicable to the operation of a boat on the lake, then there would be no problem. If the boat was operated in a negligent, unsafe or illegal manner not in compliance with the rental agreement signed be the renter, then I suppose the renter could be liable for any damages to persons or property.

I heard of an issue last year with a specific marina regarding a boat that was damaged by a renter. They were trying to make the renter pay for the damage outright, plus trying for reimbursement from their insurance company. It was a pretty significant hit, so they were trying to soak someone for thousands. It was very credible information.

I wont name names publicly on this one, but it was NOT Anchor. Someone within a mile or so of them.

I've never rented a boat. Isn't the deductible clearly stated in the agreement that a renter signs?

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.

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.

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.......

Anchor responded to you but they didn't provide the amount of liability insurance they carry which is basically a non-response in my opinion. When I asked them directly for an amount they chose not to respond to me which is a red flag in my book. My point is there is risk renting a boat (way beyond the cost of the boat) and it is prudent for renters to understand what amount of coverage they have when they do so.

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...

We are talking liability insurance. It is much less likely to be called upon than property insurance but when it is the dollars can be huge. Thank about what would happen if you had an accident and someone in your boat was severely injured or killed.

What did the other boat rental companies that you contacted tell you about their liability coverage?

Aldidonato.. The simple answer is if you have significant assets that you should do the necessary to indemnify yourself and transfer the risk to another entity via an insurance contract. True, no liability coverage would be afforded under your HO policy since you do not own a boat. I'd recommend (and it is certainly prudent) that you purchase an umbrella policy endorsement onto your HO policy. This will provide you with world wide coverage on liability issues. It provides the broadest coverage you can buy and is certainly worth it. Discuss with your insurance broker.

In the real world, any "suing lawyer" representing an injured party always looks for the "deep pockets". If you did major BI damage to someone, no doubt suit would be filed and in addition to you the plaintiff's lawyer would also name the owner of the boat as a defendant. The carrier for the boat owner will protect them and probably provide the "deep pockets" to satisfy a potential plaintiff's award. However, legal costs are expensive. The "suing lawyer" would not be barred against coming after you personally if he so desired. So, take the prudent course of action and get the umbrella endorsement.

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 :D, 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.

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 agree! :)

I only attempted to contact Anchor and after they didn't respond I didn't pursue it further with other companies.

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.

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.

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. :look: NB

Try American Boat Club
 

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.

...Decide Before You Go...
 

I like the idea of buying "a" boat. :)

For $10, I bought "a" boat to use as a planter—trouble is, it'll cost nearly triple that to register it. (...and for insurance coverage, it should be registered...)

:confused:

Maybe I should look for a canoe?

:look:

Under New Hampshire law, there are boating crash circumstances under which insurance companies won't be required to pay out.

:eek2:

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.:look:

Hey DV, sent you a Private Message...;)

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.

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.

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.

Permission is important.
 

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.