“Lay-up” means taking your boat/yacht out of active service for the period of time as shown on the declaration page of your policy. Lay-up can include either storage on land or afloat. During this time, the boat/yacht:
- Must be stored in a safe berth that is usual in the area stored
- Must not be ready for immediate use
- May not be operated
- May not be used for living on board
If a lay-up is listed on a declaration page, then the insurance carrier assumes that the boat is not being used on the water during this period of time. These dates are normally what the boater considers “winter dates”. During this period, the boat would be covered for all storage and transit exposures according to the policy form but NOT any water use. So just because your boating season is over and the policy is in the lay-up period, this does not mean you have no coverage for damage to the boat.
Some boaters assume they can just cancel their insurance when their boating season ends. Do not make this assumption. There are many claims that happen during the winter months. For example:
- The building where the boat is stored is brokeninto and the outdrives and electronics are stolen off the boat.
- There is a fire in the building where the boat is stored.
- There is a fire started by another person’s boat that is stored in the same facility damaging multiple boats.
- The roof of a building where the boat is stored collapses due to the weight of ice and snow.
It is important to check your policy closely. Not all policies have a lay-up period or have the same lay-up period. Some carriers such as American Modern do not designate lay-up periods on their policies.
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