The Influence of Climate Change on Marina Insurance Cost

Climate volatility is reshaping the marine industry, driving a surge in demand for marina insurance as unpredictable weather patterns become the new normal. Marinas now face heightened risk from severe storms, sea level rise, and coastal erosion, with NOAA reporting that the number of high tide flooding days has increased by over 400% since 2000. 

As a result, marina insurance costs have climbed, with insurance premium hikes occurring across the maritime sector. This trend reflects the rapidly evolving landscape of marina insurance due to climate risks, regulatory changes, and rising claims that are reshaping the market. 

What’s Driving Rising Marina Insurance Costs?

Storm surges, hurricanes, and wind damage have become more frequent and severe. Many marinas are now located in newly reclassified flood zones, raising both risk profiles and required coverage levels. These changes are prompting insurers to reassess premiums and adjust policies across the board.

Factors like location, exposure to natural disasters, facility size, and services offered can all influence the cost to insure a marina. Underwriters also evaluate the marina’s claims history, risk-management practices, and adherence to safety regulations. These elements help determine the overall risk profile, which directly impacts the insurance premiums and coverage options available.

The Impact of Climate Trends on Underwriting and Risk Profiles

Climate trends are driving insurers to shift from historical loss data to forward-looking risk modeling. This change enables underwriters to better assess emerging threats, such as stronger storms and rising sea levels, and adjust policies accordingly to reflect these evolving risks. 

Consequently, insurance policies are incorporating higher deductibles, more exclusions, and stricter conditions. These adjustments reflect the industry’s shift toward minimizing exposure in high-risk coastal areas, where the impact of climate change and natural disasters is increasingly prevalent. This approach aims to protect both insurers and policyholders from escalating risks.

How Marinas Can Respond & What Agents Should Know

Marinas can better manage rising insurance costs by investing in risk-mitigation measures such as fire suppression systems, routine safety audits, and comprehensive storm preparedness plans. 

Green marina upgrades, including energy-efficient lighting and environmentally friendly dock materials, support sustainability and may also improve insurability. Agents should stay informed on these strategies to better guide clients through an evolving risk environment.

Merrimac Marine Insurance offers customized policies that align with each marina’s specific risk tolerance, geographic location, and operational profile. By tailoring coverage to local hazards and business needs, we help your clients manage exposure without overpaying for unnecessary protections.

Partner With Merrimac To Navigate the Changes

With decades of specialized expertise, Merrimac Marine Insurance understands the unique challenges marinas face and delivers targeted marina insurance solutions. Our deep industry knowledge helps clients navigate complex risks and control marina insurance costs without compromising coverage.

In today’s volatile market, insurance agents need knowledgeable carriers who understand the complexities of marina insurance and can adapt to shifting risks. Contact Merrimac Marine Insurance for tailored solutions that meet your clients’ evolving needs.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.