When it comes to commercial marine insurance, it is essential that marine owners have proper dock valuations completed so that they don’t end up penalized for not carrying enough coverage.
As with many aspects of commercial marine insurance, securing a proper valuation by an experienced marine specialist is key. There are many factors to examine when considering the value of piers, wharves, and docks. A vague valuation is, of course, a detriment if your marine business needs to make a claim. Here are some areas that should be taken into account for valuing large docks, piers, or wharves at marine businesses:
â— What type of construction is used? Wood, concrete, steel, or composite?
â— How old are the docks? When were the pilings last replaced? When was the last inspection?
â— What is the condition of planks, hardware, and ramps? Are there handrails and other safety measures?
â— Are there ground fault interrupters?
â— Are there fixed or floating mooring or flotation devices?
â— Are floats and bulkheads protected to guard against corrosion?
â— Are any of the docks removed for winter? If so, how and where are they stored?
â— Are there any covered slips? How many slips are open? Is there adequate space between slips?
â— Is there fire protection? By paid or volunteer firefighters? How far away is the fire department?
â— Is there sufficient first aid and lifesaving equipment?
â— Is there a maintenance program? Is there an emergency plan in place in case of storms or natural disasters?
â— How protected is the marina (ie., is there a breakwater or is it situated in a cove)?
It can be challenging to value docks for commercial marine insurance as there must be consideration for more than the cost of maintenance and the material cost of reconstruction. In some areas, there is also the need to factor in new environmental regulations. Standards for calculating commercial marine insurance premiums for docks vary, with astute appraisers and brokers assessing what docks, piers, or wharves add to the value of the property. This is particularly important in areas with restrictions on reconstruction, for example, or unusual maintenance requirements.
Not sure whether your commercial marine insurance coverage is adequate for your dock? The marine insurance professionals at Global Marine Insurance offer specialized experience for all commercial marine insurance requirements and will be happy to review your coverage with you. Call today for assistance.
