U.S. Media Reports Say Hurricane Sandy Damaged or Sank More Than 65,000 Boats

BoatUS has estimated that Hurricane Sandy caused more than US$650m in damages to boats across the US. The US boater association also expects that more than 65,000 recreational boats were damaged or lost as a result of the storm.

"We've never seen anything like it,” said Scott Croft, BoatUS AVP of Public Affairs, in a statement. “The scope of the damage to boats is unprecedented, affecting large areas from the Atlantic seaboard as far inland as the Great Lakes, with the majority of damage in New Jersey, New York and Connecticut. The combination of boats stored ashore at low elevations and record high surge levels caused hundreds, if not thousands, of boats to float away into neighborhoods, parks and marshes. The tri-state coastline left no place for the surge to go, but up.”

BoatUS estimates that more than 32,000 boats were damaged in New York, followed by New Jersey's 25,000, Connecticut's 2,500 and 6,000 remaining in various states. Dollar damage to recreational boats in New York is estimated at US$324m, followed by $242m in in New Jersey and $23m in Connecticut. In the 2005 storm season, the combined damages caused by Hurricanes Wilma and Katrina were estimated at more than US$700m.Croft said the hurricane was the single-largest industry loss since BoatUS started keeping track in 1966.

We contacted Drew Robertson at Robertson & Robertson, Skippers’ Plan Insurance and asked if there was a database to capture write-off boats and his answer was that the Canadian market is likely to see an influx of cars and boats damaged in Hurricane Sandy. Most of these will be written off by US insurance companies and sold to salvage dealers. The concern is that unscrupulous salvage operators and brokers and sellers will move boats though other jurisdictions to mask their history.  The National Insurance Crime Bureau has a database of cars written off or stolen during Hurricane Sandy but there may not be a database for boats yet. Even if there was, (and it was done in the past for Hurricane Andrew, Katrina, Rita…) this would only capture US boats by HIN.  Canadian boats damaged by Sandy will not appear on any database.   

Jared Chartrand at Northstar Marine Insurance confirmed that and added that consumers will also go looking for these boats, seeking a great deal. He pointed out that   the engine manufacturers through their warranty programs, have detail on the original registration dates and selling locations for their engines but boats may have been relocated to other jurisdictions.

If we accept the BoatUS estimates of 65,000 boats and guess that even just 10% re-surface in Canada, that is still 6,500 used units of all types and sizes hitting the Canadian market – probably by this spring. The concern is that this could be bad for Canadian dealers and consumers alike.   “Caveat emptor” seems to be the only real protection available.  
 

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