The Michigan Riparian Summer 2017
42
all the various items and activities that should be covered by
the insurance policy.
Vacant waterfront property should also be insured,
particularly if a dock, swim ra or boat is involved.
Sometimes, a homeowner’s policy for the property owner’s
main house will cover a vacant waterfront property located
elsewhere, but not always. Such coverage should also be
reviewed with the riparian’s insurance agent to ensure good
and adequate insurance coverage for the vacant waterfront
parcel.
It is also important to clarify with your insurance agent
what matters and items are covered for liability insurance
purposes. In addition to the cottage or cabin on a waterfront
property, the liability insurance should also cover the
waterfront itself, any dock or pier, private roads utilized
jointly, swim ras and other waterfront accessories. In most
cases, a general homeowner’s liability policy will not cover
boats or watercra, which typically requires either a separate
insurance policy or a special policy rider.
Good liability insurance can cover thousands of dierent
situations or scenarios that a riparian property owner could
not possibly envision. Good liability insurance can give a
riparian property owner piece of mind.
By Cliord H. Bloom, Esq.
Bloom Slugget, PC | Grand Rapids, Michigan | www.BloomSluggett.com
The Importance of Liability Insurance
for Riparians
Liability insurance is certainly important for anyone in
Michigan who owns property, runs a business, has a vehicle
or simply interacts in the modern world. Good liability
insurance is even more important for those people lucky
enough to own a waterfront property.
Obviously, the potential hazards associated with a waterfront
property are generally greater than for conventional
properties. People can drown in lakes and rivers, be injured
while diving o boats and docks, be hit by a boat, be injured by
nails or screws and sharp corners on docks or swim ras and
face a variety of other potential hazards along the waterfront.
Whether the riparian property owner is negligent or not,
good and sucient liability insurance is very important. If
a riparian is sued, found liable and owes a large judgment,
the riparian landowner’s life savings could be wiped out if
there is no insurance coverage or the insurance coverage
is inadequate. Even if the riparian potentially successfully
defends against a lawsuit, good liability insurance will cover
the attorney fees and costs incurred in defending against the
liability claim in most cases.
In today’s litigious society, a liability insurance policy for a
waterfront property with maximum coverage of $300,000 or
even $500,000 is probably not enough. Ideally, the liability
insurance coverage for a riparian property should be at least
$1,000,000, $2,000,000 or even more. Quite oen, a riparian
property owner can purchase an umbrella liability policy
that “goes on top of ” the underlying liability insurance.
It is oen prudent for a riparian landowner to meet
periodically with their insurance agent for an “inventory” of
