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Helping New Yorkers With Denied Boat Damage Claims

At Vargas Gonzalez Delombard, our experienced insurance dispute attorneys understand the tactics insurers often use to deny or undervalue boat damage claims. With deep experience, sharp legal insight, and a client-first approach, we can help you challenge wrongful denials and fight for the full recovery you deserve. Don’t let an insurance company control your financial future—schedule a consultation with us today to protect your rights in New York and beyond.

What Does Boat Insurance Cover?

Physical Damage to Your Boat

  • Most boat insurance policies cover physical damage to the vessel itself, including the hull, motor, sails, and other attached equipment
  • This protection applies whether damage results from a collision, vandalism, theft, fire, or weather-related events (such as storms)

Liability Coverage

  • Liability protection is crucial
  • It covers bodily injury and property damage you may cause to others while operating your boat
  • For example, if you accidentally collide with another boat or dock and cause damage, your liability insurance helps cover legal fees, settlements, or court awards

Medical Payments

  • Boat insurance often includes medical payment coverage to pay for medical expenses for you, your passengers, or others injured in a boating accident, regardless of who was at fault

Uninsured/Underinsured Boater Coverage

  • Not every boat on NY’s waters is properly insured
  • If you’re involved in an accident with an uninsured or underinsured boater, this coverage can help pay
  • for injuries and damages that the other party cannot cover

Personal Property Coverage

  • This part of your policy can protect personal belongings stored or used on the boat
  • Examples include fishing gear, watersports equipment, and electronics, if they are lost, damaged, or stolen

Towing and Assistance

  • If your boat breaks down while on the water, many policies offer towing and emergency assistance coverage
  • This can include fuel delivery, towing to a repair facility, or even minor mechanical repairs on-site

Wreck Removal

  • If your boat sinks or is severely damaged and must be removed, some policies cover the cost of wreckage removal
  • This is an especially important consideration in NY’s crowded and environmentally sensitive waterways

Fuel Spill Liability

  • Accidental fuel spills from your boat can lead to hefty environmental fines and cleanup costs
  • Boat insurance typically includes coverage for these types of incidents
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Common Reasons for Boat Insurance Claim Denials in NY

Insurance policies often require that boats be maintained in a seaworthy condition. If damage results from neglect, such as failing to service bilge pumps or address corrosion, insurers may deny the claim, citing owner negligence. For instance, a sinking at the dock due to a failed bilge pump may be attributed to poor maintenance.

Claims may be denied if the cause of damage falls under policy exclusions, such as:

  • Normal wear and tear
  • Manufacturer defects
  • Mechanical breakdowns
  • Corrosion
  • Damage from marine life

Mistakes during the claims process—like submitting incorrect forms, providing inaccurate information, or missing deadlines—can lead to denials. Even minor errors, such as typos or misfiled documents, may be grounds for rejection.

Other examples include:

  • Operating Outside Covered Navigation Areas: Many policies specify geographic limits for coverage. Any resulting damage may not be covered if you operate your boat outside these designated areas without proper endorsements.
  • Lapsed or Inactive Policies: Allowing your insurance policy to lapse, even during off-season storage, can leave you unprotected. Damage occurring while the policy is inactive, such as fire or theft during winter storage, will not be covered.
  • Delayed Reporting of Incidents: Timely reporting is essential. Delays in notifying your insurer about an incident can complicate the claims process and may result in denial due to insufficient evidence or questions about the claim's validity.
  • Insufficient Documentation: Failing to provide adequate documentation, such as photos, repair estimates, or police reports, can hinder your claim. Comprehensive records support the legitimacy of your claim and facilitate the evaluation process.

New York Laws Protecting Boat Owners From Unfairly Denied Insurance Claims

Prohibition of Unfair Claim Settlement Practices

Under New York Insurance Law § 2601, insurers are prohibited from engaging in unfair claim settlement practices. This includes actions such as:

  • Knowingly misrepresenting relevant facts or policy provisions
  • Failing to acknowledge and act promptly upon communications regarding claims
  • Not conducting reasonable investigations based on available information
  • Refusing to pay claims without conducting a reasonable investigation
  • Failing to affirm or deny coverage within a reasonable time after proof of loss statements have been completed
  • Compelling insureds to institute litigation to recover amounts due by offering substantially less than the amounts ultimately recovered in such actions

These provisions are enforced by the New York State Department of Financial Services (DFS), which oversees insurance practices in the state.

Regulation 64 – Standards for Fair Claims Handling

Regulation 64 (11 NYRR Part 216) establishes minimum standards for the prompt, fair, and equitable settlement of insurance claims. It mandates that insurers:

  • Assist claimants in the processing of claims
  • Not demand unnecessary documentation
  • Clearly inform claimants of the insurer's position regarding any disputed matter
  • Respond promptly to all communications from claimants

Violations of these standards can be considered evidence of unfair claim settlement practices.

DFS Oversight and Enforcement

The New York State Department of Financial Services (DFS) regulates insurance companies operating within the state.

If an insurer is found to violate state insurance laws or regulations, the DFS has the authority to impose penalties, including fines and license suspensions.

Consumers can file complaints with the DFS if they believe their insurer has acted improperly.

Mandatory Disclosure and Transparency

New York law requires insurers to provide clear and accurate information about policy terms, conditions, and exclusions.

This ensures that policyholders are fully informed about their coverage and any limitations that may apply.

How a Boat Damage Insurance Claim Lawyer in NY Can Help

You don't have to face the battle alone when your boat damage insurance claim is denied or undervalued. A seasoned boat damage insurance claim lawyer in New York can level the playing field, ensuring your rights are protected and giving you the best chance to recover what you're owed.

Here’s how the team at Vargas Gonzalez Delombard can help you navigate the process:

  • We start by thoroughly reviewing your insurance policy and the insurer’s reasons for denial. We break down the fine print, identify coverage you may be entitled to, and spot any bad faith tactics insurers might use.
  • Insurance companies often deny claims based on ambiguous policy language or exaggerated claims of owner negligence. Our attorneys have extensive experience disputing these denials, building strong, evidence-backed cases to challenge unfair decisions. We negotiate aggressively on your behalf, leveraging our legal knowledge and real-world experience to maximize your financial recovery.
  • We’re fully prepared to take your case to court if negotiations fail. We have a proven track record of holding insurance companies accountable in the courtroom, fighting relentlessly for the compensation you deserve. Our trial-tested attorneys won’t hesitate to litigate if that’s what it takes to protect your interests.
  • When you work with us, we handle the heavy lifting: managing communications with the insurer, meeting all deadlines, and keeping you informed every step. We focus on the legal battle so you can focus on moving forward.
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FAQ's

Do I need a marine surveyor to support my insurance claim?

Can I choose my own repair shop after my boat is damaged?

How long does an insurance company have to settle a boat damage claim in New York?

Will filing a claim make my boat insurance rates go up?

What if my boat was damaged while stored for the winter?

Does boat insurance cover damage caused by hurricanes or severe storms?

Can I file a bad faith lawsuit against my insurer for wrongful denial?

Can my claim be denied if I let someone else operate my boat?

Do I need a marine surveyor to support my insurance claim?

A marine surveyor can provide an independent, professional evaluation of your boat’s condition and the extent of damage. Insurers often trust these reports; having one can significantly strengthen your claim. Vargas Gonzalez Delombard can connect you with reputable surveyors to bolster your case.

Can I choose my own repair shop after my boat is damaged?

Yes, in most cases, you have the right to choose your own repair shop in New York. However, insurers may push for preferred vendors. We help ensure you aren't pressured into using shops that may prioritize cost-cutting over quality repairs.

How long does an insurance company have to settle a boat damage claim in New York?

Under New York law (Regulation 64), insurers must promptly investigate and settle claims. They are generally required to acknowledge receipt within 15 business days and accept or deny a claim within 30 business days after receiving proof of loss. If your insurer delays, Vargas Gonzalez Delombard can step in to enforce your rights.

Will filing a claim make my boat insurance rates go up?

Filing a claim can potentially lead to higher premiums, especially if the insurer views you as a higher risk afterward. However, unjustified claim denials should not impact your rates. If you're worried about your future insurability, our team can help you weigh the pros and cons.

What if my boat was damaged while stored for the winter?

Damage during off-season storage is often covered, but only if you maintain a valid, active policy. It's critical to report storage conditions accurately. If an insurer tries to deny your claim based on alleged improper storage, Vargas Gonzalez Delombard can challenge them.

Does boat insurance cover damage caused by hurricanes or severe storms?

Yes, most policies cover storm damage, but deductibles for named storms (like hurricanes) may be higher, and certain coverage limitations might apply. If your hurricane-related claim is denied or undervalued, we can help you fight back.

Can I file a bad faith lawsuit against my insurer for wrongful denial?

Yes. If your insurance company acts in bad faith, such as by misrepresenting policy terms, delaying without reason, or making unreasonable demands, you may have grounds for a bad faith lawsuit. Vargas Gonzalez Delombard can evaluate whether your situation qualifies and pursue additional damages on your behalf.

Can my claim be denied if I let someone else operate my boat?

Possibly. If the person operating your boat was not properly licensed, intoxicated, or otherwise excluded under your policy’s terms, it could lead to a denied claim. We can review your situation to determine if a denial based on third-party use is legally justified.

Ready to Fight Back?

If your boat damage insurance claim in NY has been denied, delayed, or underpaid, don't wait. Contact Vargas Gonzalez Delombard today to schedule a consultation and put a powerful advocate in your corner.

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