Marina Slip and Storage Contracts: What to Read Before You Sign

Check the boat's name, length (how the marina measures it: overall, including swim platform and pulpit?), the slip or space number, the term (season, annual, month-to-month), the price and what it includes (electricity, water, pump-out, Wi-Fi, launch or haul fees, winter bubblers). BoatUS notes contracts usually spell out fees and the consequences of not paying, and often bar subleasing the slip or running a business from it.

BoatUS says marina contracts almost always require a liability policy with a minimum limit, and many also require hull (physical damage) insurance. Write down:

• The minimum liability limit, and whether your policy meets it
• Whether hull coverage is required
• Whether you must send a certificate of insurance each year
• Whether the marina must be named as an additional insured (see step 4)

You'll also usually need current state registration or a decal, and some contracts require the boat to be operable, or even to leave the slip once or twice a year.

Look for words like "release," "hold harmless," "indemnify," "defend" and "exculpatory." BoatUS describes three common kinds:

• Exculpatory (release) clauses try to excuse the marina from its own ordinary negligence, sometimes listing fire, theft, vandalism, equipment failure and storms.
• Indemnity for third parties means if a guest or a worker on your boat is hurt at the marina, even through the marina's fault, you agree to defend the marina and pay.
• Broad "defend and indemnify" language covering any claim arising from your use of the boat.

BoatUS's 2012 article cites an admiralty lawyer who notes that such waivers are generally enforceable only when they don't conflict with public policy, and that courts have tended not to enforce them for gross negligence. BoatUS's example: ordinary negligence would be gouging gelcoat during haul-out; gross negligence would be a yard worker running the Travelift drunk. Don't count on a court to rescue you from ordinary-negligence waivers.

Many boat policies exclude liability you take on by contract. BoatUS says its own policies include contractual liability coverage for slip and storage contracts, but yours may not. Ask your insurer directly.

• Additional insured: BoatUS compares adding the marina to your policy to adding "Uncle Bob": your insurer then protects the marina much as it protects you. Claims paid for the marina's negligence can land on your claims history and raise your premium. Whether your insurer will add the marina, and at what cost, is the insurer's decision.
• Waiver of subrogation: normally, after your insurer pays a claim the marina caused, it can go after the marina to recover. A waiver gives that right away. BoatUS warns that most policies don't let you limit your insurer's recovery rights, so signing a waiver may let your insurer deny the claim for that incident, and at best you're still out your deductible.

BoatUS's advice: review these clauses with your insurance company before signing. Some insurers will work out compromise language or a special endorsement with the marina.

Practical Sailor notes that most yards publish a do's-and-don'ts sheet listing what owners may do themselves, and that rules on subcontracted work are a frequent source of friction. Find out:

• Can you do your own maintenance in the slip or on the hard? Which jobs (sanding, bottom paint, fiberglass, engine work) are banned or restricted?
• Can you bring in an outside mechanic, canvas maker or detailer? BoatUS says many contracts require outside workers to show proof of liability insurance and workers' comp before starting.
• Is there a fee for outside contractors?
• Environmental rules: drop cloths, vacuum sanders, no bilge discharge, hazardous waste disposal.

Practical Sailor says yards have clamped down on DIY partly because owners sneaked in unauthorized subcontractors. Follow the rules and tell the office who is coming. On the hard, BoatUS notes the yard is responsible for blocking and owners generally may not move or adjust jack stands.

Discover Boating says most marinas require an application to live aboard, some areas don't allow liveaboards or have long waiting lists, liveaboard slip fees are usually higher, and your insurance may change if the boat becomes your primary residence. Even if you don't plan to live aboard, check limits on overnight stays, guests, parties, pets, and running generators or heaters. BoatUS notes you can be terminated if your guests break the rules.

BoatUS says some contracts let the marina charge you for fenders or dock lines it decides are inadequate, and make you pay to pump out and raise your boat if it sinks. Look for rules on shore power cords and adapters, unattended heaters, dock boxes, fueling, and keeping the boat clean and seaworthy. Our dock lines and shore power guides help you meet these.

In storm-prone areas, read what happens when a named storm approaches:

• Must you remove the boat, haul it, or double up lines? By what deadline?
• Will the marina move or haul your boat if you can't, and at what charge?
• Can you stay aboard during a storm? (Usually not, and you shouldn't.)
• Does the marina reserve the right to cancel the contract after storm damage? BoatUS notes this right often isn't given to the slip holder.

State law can change the answer. Florida section 327.59, for example, bars marinas from requiring boats to leave after a hurricane watch or warning is issued, to put people's safety ahead of property. But a Florida contract may include a notice, in at least 10-point type, letting the marina move or secure your boat and charge a reasonable fee if you don't remove it promptly after a watch. Look for that notice in your contract.

BoatUS also suggests asking the marina what hurricane plan it has, since some marinas require owners to file their own. Some yards run a "hurricane club" that hauls members' boats when a warning is posted; sign-up usually closes well before the season and may need a nonrefundable deposit. Match all of this to your own hurricane plan and to your insurer's requirements.

BoatUS points out common one-sided terms: the marina can cancel for reasons beyond its control, can terminate for cause (late fees, rule violations, even guests' behavior), and may owe no prorated refund. Check:

• Notice periods for you and for the marina
• Automatic renewal and rate increases
• Whether you can transfer the slip if you sell the boat (usually not)
• Deposits and when they're returned

If you fall behind on fees, BoatUS says the contract may let the marina put a lien on the boat, "arrest" it so it can't leave until you pay, and charge you its legal costs. Many states also give marinas a statutory lien and a process to sell the boat: Florida section 328.17, for example, gives a marina a possessory lien for storage and dockage fees, repairs and related charges from the day the boat arrives, and sets out a process for selling the boat without going to court after the required notices. Rules and deadlines vary by state. Our storage-lien guide explains how it works. If money gets tight, talk to the marina early; don't let it reach a sale notice.

BoatUS's 2012 article notes that terms are negotiable before you sign, and that walking away is a real option a marina in business has to consider. Some marinas will strike clauses for a higher fee. Ask:

• "Can you remove or narrow the waiver of subrogation?"
• "Will you accept my insurer's standard additional-insured language?"
• "What DIY work is allowed, and can I bring my own mechanic?"
• "What exactly happens when a hurricane watch is posted?"
• "What's included in the rate, and how much did rates rise last year?"

Get any agreed changes in writing, signed or initialed by the marina.

BoatUS stresses this one: if the marina damages your boat, or you or a guest are hurt at the marina, notify your insurer immediately, even if the marina says it will handle it. Marinas sometimes change their minds, and by then it may be too late for your insurer to help. Take photos and keep copies of your contract, rules and correspondence. Our insurance claim guide walks through the process.