Boat Storage Contract

[Captain Caveman]

I'm storing my boat in a neighbor's garage this winter. I want to draw up a simple contract that covers the major storage issues without being too extensive. Issues that I addressed so far:

- Storage dates
- Payment terms
- Right to visit/work on boat
- Expectation of basic security and protections
- Insurance

Am I missing any major contract items? I don't want to scare the old woman off but want each of us to feel secure that the basic items are covered.

 

[jkust]

Re: Boat Storage Contract

How are you addressing the insurance as is on your list? Her standard HO isn't going to cover your boat if the garage burns down in this scenario as I understand it.

 

[oldjeep]

Re: Boat Storage Contract

I'd be careful with that contract unless you have talked all this stuff over first. No storage area in their right mind is going to grant rights to visit/work on your boat, and no private individual is going to grant you those rights -especially working on it unless they are a good friend.

You should have insurance on your boat, even a commercial storage place isn't going to cover you for loss.

 

[oldjeep]

Re: Boat Storage Contract

When I used to store my boat at a buddies place the agreement went something like this.

If you don't want the boat moved during the winter then you need to help me move all the crap in the pole barn so that we can put it in back - then do it again in the spring. Nobody is going to steal a boat in MN in the winter (hell they don't even steal them in the summer), so security is a non issue, except for the cats that he had roaming to take care of the mice. Payment terms were a couple cases of beer - that we went through a bunch of while moving everything in the pole barn. Storage dates - well let me know when you want to drop/pick it up and I'll tell you if I'll be around

 

[H20Rat]

Re: Boat Storage Contract

How are you addressing the insurance as is on your list? Her standard HO isn't going to cover your boat if the garage burns down in this scenario as I understand it.

I'm curious about that one also... Do you expect their insurance to cover you, or have you thought of the opposite? Your insurance needs to cover anything that your boat may do to them! IE, you left the battery in, mice chewed through a cable, shorted out, and burnt their garage down. Generally, in a rental agreement, the owners insurance covers ZERO property for the renter.

 

[metriccrescentwrench]

Re: Boat Storage Contract

IMO if you can't just agree to everything with a handshake then take the boat to a commercial storage facility. It sounds like you're getting way too complicated for simply storing a boat in your neighbor's garage. Hell, if I had agreed to let a neighbor or family member store something in my garage for a few months and then they came at me with that kind of formality I'd tell them to forget it.

 

[Captain Caveman]

Re: Boat Storage Contract

I used to store my boat at a friend's aunt's house in Minnetrista in her barn. The deal was we raked acres of leaves for her, and the cats would patrol our boats all winter to keep the mice away.

As for insurance, I said that we would both carry insurance - me on my boat/motor/trailer and her on her facility. I don't want her going after my boat insurance unless my boat directly caused damage to her garage. As for security, I just want her to make sure that the doors are locked to minimize the chance that someone steals something from the boat. That would still fall under my boat insurance if there were a claim.

If I were just storing it for free, I'd agree, but I'm paying near commercial rates with the benefit of being close to home and I can pick it up whenever I want.

p.s. The one page agreement says that I won't be able to visit or work on the boat while in storage

 

[Home Cookin']

Re: Boat Storage Contract

it can be done but as the comments all point out, it's not always simple. You either have a friendly handshake deal, or you have a business deal, but it's very hard to blend them.

Since none of us know the real set-up, none of us can say whether your having open access to the garage makes sense or not. Perfectly fine for friends. Maybe not for strangers.

friends or business, you are right to spell out the basic terms of payment and dates. But what if you want to take it out early, or is she wants its gone early? Do you still pay rent? Can she kick you out? How much notice does one have to give the other?

Insurance coverage is huge. each of yo usimply have to understand what is covered and what is not.

Generally speaking I think it's better to set it up as a license rather than a lease, but there are a lot of factors that go into that.

People with outbuildings let other people store stuf fin them all the time. it's nothing new to those who are used to it. It's complicated for those who are new to it.

 

[MarkSee]

Re: Boat Storage Contract

I think it's prudent to get things understood by both parties in writing but what I haven't read yet from you is what YOUR insurance company has to say.

I would think you need to explain to the insurance company what you're wanting to do paying some money to a private party for temporary storage at a private residence. Are/would there be any denial of claims issues should something not only happen to the boat or property in the boat, but if the boat were to cause some kind of damage to property or persons while on the premises.

Knowing what your insurance company has to say say might help you decide.

FWIW: I remember the guy doing the boating safety class I took back in the 80's saying something I'll never forget and I admit, I don't know the exact law but I won't risk it so I've followed his advice.
He said you never, ever, accept money for fuel or expenses offered to you by friends you are taking out for the day on your boat until you are back at the dock and the trip is over. Why? Because taking money before hand could be construed as "commercial"/"for hire" and could be in violation of your boat policy should something tragic happen.

Be sure you know and are following exactly what your insurance company needs/provides.

Mark

 

[AChotrod]

Re: Boat Storage Contract

If the lady wants all that, I wouldnt want to store it there anyways. Seems crazy to me. Insurance is all you need.

 

[AChotrod]

Re: Boat Storage Contract

IMO if you can't just agree to everything with a handshake then take the boat to a commercial storage facility. It sounds like you're getting way too complicated for simply storing a boat in your neighbor's garage. Hell, if I had agreed to let a neighbor or family member store something in my garage for a few months and then they came at me with that kind of formality I'd tell them to forget it.

100000% Agreed there. Seriously we used to ride bicycles without helmets too. Lol.

 

[JoLin]

Re: Boat Storage Contract

You guys may be overthinking the insurance angle. Yes, the OP needs to insure his own boat. No question. But IMO the 'where are you storing it?' question is just something the insurance company needs to know, not anything they necessarily need to approve. What's the difference (insurance-wise) between storing it indoors in a garage, vs outdoors in a marina, vs in your own driveway or anywhere else? There might be some minor difference in the premium (I don't know that), but boats spend the winter everyplace.

 

[Home Cookin']

Re: Boat Storage Contract

I think th epoint on the insurance is not to assume that her insurance would cover your boat if the garage burned down

 

[smokeonthewater]

Re: Boat Storage Contract

also at home you don't have liability to yourself... if the boat causes a fire in HER garage you could be liable for her house and possibly even her life.

at least worth a short discussion w the ins agent.

 

[Captain Caveman]

Re: Boat Storage Contract

To be more specific, this isn't actually a neighbor's garage. It's my neighbor's best friend who lives a few miles away that I've met only once by telephone. Some may walk away if presented with an agreement, but someone is storing my $15k boat and it makes sense to spell out the basics. If this were a buddy....case of beer and done. These aren't similar situations. She offered to store it for some extra cash, it's a better deal for me than commercial storage, so it makes total sense to spell out the when, the where, and the hows. In reality, the agreement outlines her protections more than mine.

The worst case scenario is that I show up in the spring and my boat is gone. I'd feel pretty stupid not having drawn up a simple agreement.

 

[WIMUSKY]

Re: Boat Storage Contract

Given your situation I would store it at a commercial site. If something did happen to the boat being stored at a friend of a friends place, it could get very sticky. A "simple agreement" may not cut it....... People can be fine at the onset and when something happens, you're in court. Jekyll/Hyde thing. May cost you more, but in the long run it could be very cheap....

"I don't want her going after my boat insurance unless my boat directly caused damage to her garage"
At the same time, I don't want my insurance company covering your boat just because I'm doing you a favor. And maybe you don't expect them too....... Then again, maybe your insurance co. would go after hers. Could get ugly...

 

[Home Cookin']

Re: Boat Storage Contract

doesn't sound liek a bad idea and it's wise to get it in writing. where there are risks, there are rewards

 

[agallant80]

Re: Boat Storage Contract

To me this just has bad idea written all over it. What are you going to do? Throw the contract in your neighbors face if he does not live up to the contract? You have to live next to this guy and being at peace with the neighbors is worth more than a place to store a boat.

 

[Slip Away]

Re: Boat Storage Contract

Her insurance likely covers the structure and contents of the barn. No matter what is in it. Her tractor, your boat, whatever.

Just make a simple receipt that says something like "Paid $-.-- for winter storage, owner will pick up boat in spring" Each of you
get a copy. Don't ask your insurance agent a thing, don't ask her insurance agent a thing. Pay her, store the boat, and don't think about it again until spring.
It's done all the time without all the "what if's" mentioned here.

 

[smokeonthewater]

Re: Boat Storage Contract

personally the whole thing sounds risky BUT I can't see ANY gain for you in writing a contract that protects the other party and puts liability on you... If anything you should simply rent the garage or the portion of it that your boat is in and purchase renters insurance to protect yourself.

If the boat is gone in the spring, call police n report stolen, collect check from your ins.... a contract has no effect on that.


Better bet.... if, as you say, you aren't saving much, take it to the commercial storage facility and be done with it.... just my .02