I opened my cabin and smelled the ammonia. Rats had moved in during the winter. They chewed through the main wiring harness, the upholstery, and the headliner. The repair estimate was $18,000. My insurer pointed to the “Vermin Exclusion” and offered $0.
Key Takeaways
- The “Vermin” Definition: In homeowners insurance, vermin (rats, mice, squirrels) are almost always excluded. In marine insurance, it varies wildly. Some comprehensive policies do cover vermin damage, but you have to check the definition.
- Raccoons are the Loophole: Some policies list “rodents” as excluded. A raccoon is not a rodent (it’s a procyonid). If a raccoon did the damage, you might be covered when a rat claim would be denied.
- Consequential Damage: Even if the chewing is excluded, if the chewed wire causes a fire or sinking, the resulting loss is often covered.
- Otters/Muskrats: These are often covered under “Collision with floating object” or “Animal” depending on the policy language.
The “Why” (The Trap)
The trap is “Maintenance vs. Accident.”
Insurers view infestations as a failure of maintenance. You should have checked the boat.
However, a high-end “All-Risk” yacht policy often removes the vermin exclusion or limits it only to the animal itself (not paying to replace the rat), while covering the damage (the wiring).
The Investigation (I Checked Clauses)
I looked at the specific wording of three carriers.
BoatUS
- Clause: Historically very generous. They often cover raccoon and muskrat damage. Rat damage is hit-or-miss depending on the specific “Yacht” vs “Boat Saver” policy.
Progressive
- Clause: “We do not cover loss caused by… vermin, rodents, insects.”
- Verdict: Strict denial usually.
Chubb
- Clause: “All-Risk.”
- Verdict: Covered, provided you can show the boat was generally cared for.
Comparison Table
| Animal | BoatUS | Progressive | Chubb |
| Rat/Mouse | Variable | Denied | Covered |
| Raccoon | Covered | Denied (Usually) | Covered |
| Insect (Termite) | Denied | Denied | Denied |
| Muskrat (Sinking) | Covered | Maybe | Covered |
Step-by-Step Action Plan
- Identify the Poop: You need to know what animal it was. Raccoon scat is different from rat droppings. If it was a raccoon, emphasize that in the claim.
- Check for “Consequential” Clauses: If the damage caused a short circuit that fried the ECU, claim the ECU as “Electrical Damage,” not just “Rat Damage.”
- Mitigate: Set traps immediately. If you leave them there, further damage is “failure to mitigate.”
- [IMAGE: Photo of chewed wiring harness next to a trap]
- Review Policy Before Renewal: If you store your boat in a barn, switch to a carrier like BoatUS/Chubb that has better vermin terms.
FAQ
Does mothball smell count as damage?
No, smell is rarely a covered loss unless the upholstery must be replaced to remove it.
What if an otter poops on my canvas?
That’s usually cosmetic/maintenance. Cleaning is on you.