Withstanding the Storm Surge: Boat Owners Face Extensive Damage and Insurance Claims

It is still difficult to understand what happened last Friday and Saturday. The flood of the century, which particularly hit the Baltic Sea coast of Schleswig-Holstein and Denmark, caused immense damage in some places. It is not yet possible to predict how high they will ultimately be. However, many millions of euros will certainly be necessary to repair flooded houses, broken dikes, washed-out streets and destroyed port facilities.

It has also affected countless boat owners. In several harbors the piers could not withstand the incoming masses of water. Jetties were torn from their anchorages, stern posts were simply not high enough, so that they sank into the floods at water levels of over two meters above the average water level. As a result, mooring lines came loose, ships drifted away, collided with neighboring boats, sank at the berth or were thrown onto the bank.

Lucky in misfortune was whose ship escaped with minor injuries. Scratches on the side of the ship, torn sail covers or even a torn headsail that came loose in a storm can be repaired with a reasonable amount of effort. However, if there is a hole in the hull, the bow has rubbed against the jetty, cleats have been torn from the deck or the ship has even gone to depth, the amount of damage can quickly reach five, if not six, figures in individual cases.

Jonas Ball, spokesman for boat insurance broker Pantaenius Yachtversicherungen, says: “Considering the extent of the storm surge, we currently see no reason to attribute the damage caused to a lack of care in preparation. As part of the Pantaenius yacht comprehensive insurance, the resulting damage is initially covered in accordance with the terms and conditions.”

And Andreas Medicus, managing director of the boat policy broker Hamburger Yachtversicherung Schomacker, also assures: “All damages will be paid as part of our insurance contracts.”

The same thing comes from Thorsten Franz, the marketing and communications manager at the insurance broker Firmenich Yachtversicherungen: “Anyone who has taken out a boat hull with us will have their damages covered. In the event of a total loss, there is not even a deductible.”

The extreme flood is classified as a case of force majeure. Damage caused by this is insured. “And the costs for any necessary salvage of the ship and the removal of the wreck are also covered by the hull insurance,” adds Andreas Medicus.

Anyone who has taken out boat comprehensive insurance through one of the well-known providers can breathe a sigh of relief. This usually includes all-risk coverage. This means that, in principle, all damage events that are not expressly excluded in the small print, such as events of war, are insured.

Contrary to rumors to the contrary that have been circulating since the weekend, especially on social networks, a person insured in this way does not need to worry about payments being reduced or refused entirely because they have not done enough to protect their ship. The major insurance providers apparently do not want to raise the objection of gross negligence.

In plain language, this would mean that anyone who was not with their ship before or during the storm surge, for example in order to move it to a safer harbor or secure it with additional lines, would retain full insurance cover.

“When the big insurers say it like that, it’s groundbreaking!” explains lawyer Heyko Wychodil, who specializes in recreational boat law. As someone with comprehensive insurance, you are entitled to the contractually agreed insurance benefit. “But,” says Wychodil, “the insurers could certainly try to accuse owners of having acted with gross negligence. For example, because they did not take off the sails or remove the sprayhood or because they deployed too few or too weak lines.

It is therefore good that the leading providers are now announcing that they will pay without any problems. However, insurers less established in the boat sector could very well try to blame affected owners for contributory negligence. “The legal situation allows for that. But then the insurer has the burden of proof. “He must first prove to the owner that he did not adequately fulfill his duty of care,” said the lawyer.

Also Jochen-P. Kunze, a lawyer who also specializes in recreational boat law, emphasizes that he sees no fundamental problem with the upcoming claims settlement. “Such a flood disaster should be covered by the comprehensive insurance policies that are now common in this country,” says Kunze. Things could look different with smaller or foreign insurance providers. “If their contracts include single-risk coverage instead of all-risk coverage, you have to check whether damage caused by floods or storms is explicitly insured.”

He’s not really worried about having trouble with the insurance company when it comes to recognizing the damage. “Disputes are to be feared when assessing the damage caused to the ship,” says Kunze. “Especially for very high-quality yachts, I recommend getting your own appraiser instead of relying solely on the judgment of the insurance expert.” If at all possible, he should be present during the salvage or initial assessment by the insurance adjuster in order to effectively represent the owner’s interests. “If in doubt, if no professional expert is available, at least consult someone with proven expertise. “For example, a boat builder or sailing instructor,” is the tip from lawyer Kunze. Experience has shown that a lot of trouble could be avoided from the outset.

Naturally, all those who do not have their boat insured or only have liability insurance are left with their own liability. Depending on the value of the ship and the type of damage, this can be really expensive. In the worst case scenario, an uninsured boat has sunk and must be salvaged and disposed of. In case of doubt, the owner then bears the costs.

However, if your own boat was damaged by a neighboring ship that broke loose, for example, there is a chance of having the damage reimbursed by its owner or its liability insurance. But then you would have to prove to the neighbor in court that you acted culpably. Experts consider the chances of success in such a case to be rather low.

What property owners who have comprehensive insurance must do in any case has not yet done so: contact the insurance company or the insurance broker. The next steps to determine and repair the damage are then discussed together. Nobody should go it alone and ask the nearest shipyard to carry out repairs.

“As a rule, affected owners whose ships are not damaged beyond repair must first obtain a cost estimate from a repair yard and present it to us,” explains Jonas Ball from Pantaenius. However, in the case of minor damage, we will be flexible. For example, if an owner repairs minor scratches and scratches on the hull on their own, they can, after prior consultation, calculate the costs themselves and then bill the insurance company against appropriate receipts.

In many cases, however, patience will be required. In the ports most severely affected by flooding, local boat builders are likely to be at capacity for weeks and months. However, in the case of major damage, it is not possible without the insurance company’s approval, including an expert’s assessment of the damage. Even if that means that due to a lack of quick repair options, the coming season threatens to be ruined for some people.