Marina Dock Age, July/August 1999

The Financial Impact of Severe Weather
by Dennis P. Kissman

Typically a hurricane is the first thing that comes to mind when we think of weather damaging a marina. In reality, more damage is caused annually at marinas by other forms of severe weather than by hurricanes. Granted, hurricanes get all the press, but marina owners who have seen their marinas get washed down a river on a spring flood or their docks turned into toothpicks after a tornado dropped in for a visit know that all severe weather can be as devastating as hurricanes.

Unfortunately, natural disasters are a way of life at marinas, no matter where your marina is located. It’s just a matter of time. Now the question is: If you know something will eventually happen, what can you do to minimize the financial impact on your marina?  

One of the responses regarding hurricanes I hear most often from marina owners is: “That’s what I have insurance for.” If that’s your attitude, you have lost sight of why you are in business. I have never seen a marina be financially successful through an insurance settlement. Granted, there have been a few unscrupulous owners who have enjoyed cash windfalls through an insurance loss, but in the end, the marina always suffers.

It is difficult to foresee natural disasters other than hurricanes, so it is best to be prepared at all times. One of the best ways to minimize damage from a natural disaster is to minimize your deferred maintenance. A marina facility is like a house of cards: The weakest link gives way when additional strain is put on the rest of the structure, often causing it to fail. The key is not to have your marina fail in the first place.  

Since most of these disasters occur without warning and because marina owners in some states, like Florida, are restricted from requiring boats to leave the marina when a hurricane is imminent, your marina will more than likely have boats in it when natural disaster strikes. Just as additional strain is put on your marina during these times, the boats in your marina are subject to these same forces, placing additional load on your structures. Continue »