Boat Dock: Personal Property Or Not?

Whether a boat dock is considered personal property or not depends on several factors. These include the type of dock, the location, and the local laws and regulations. For instance, in Wisconsin, a dock is considered private property and belongs to the owner of the lakefront property. On the other hand, floating docks that are not permanently attached to real property may be considered personal property, especially if they can be easily moved. Additionally, insurance companies may have different classifications for boat docks, and while some may offer the option of adding dock coverage to a boat insurance policy, others may consider removable docks as personal property.

Floating docks: personal or real property?

The classification of floating docks as personal or real property is a complex issue that has arisen in many marina tax appeal cases. The treatment of floating docks varies across different jurisdictions, with some considering them real property and others not. This inconsistency has led to confusion and disputes, as evident in a case where a buyer threatened legal action, assuming that a floating dock was part of the property.

The fundamental distinction between personal and real property lies in the attachment and permanence of the structure. Personal property refers to items that are not permanently affixed to real estate, while real property includes structures that are permanently attached to the land. Floating docks, by nature, are not permanently attached and can be moved relatively easily. This mobility has led the IRS to classify floating docks as equipment, and consequently, as personal property.

However, the determination of whether a floating dock is personal or real property can be nuanced. Some factors that may influence this classification include the intention of the owner, the manner of attachment, and the adaptability of the dock to the use of the realty. For instance, a floating dry dock that primarily services one location may be considered real property, even if it is moved occasionally. On the other hand, an identical dry dock moved between multiple locations might be classified as personal property.

The ownership of the underlying land where the dock is affixed further complicates the issue. In some cases, the basin land under the lake may be owned by the municipality or the state, while in other cases, it may belong to the property owner. This variation in land ownership can impact the classification of floating docks as either personal or real property.

The discrepancy between how different jurisdictions classify floating docks has significant implications for taxation. Recent tax changes have made the tax rates on personal property substantially lower than those on real property. As a result, the classification of floating docks directly affects the tax obligations of marina owners.

Docks as 'appurtenances'

Docks as appurtenances

The classification of a boat dock as personal or private property is a complex issue that can vary depending on the specific circumstances and the jurisdiction in which the property is located. In some cases, docks may be considered appurtenances to the land they serve, even if they are not permanently fixed in place.

An appurtenance refers to an item that is used in conjunction with a piece of land and is incidental to the land's use and enjoyment. In the context of a lakefront property, a dock can be considered an appurtenance as it is used for the benefit of the land, providing a space to park boats and access the water. This is especially true if the dock is necessary or beneficial for the use and enjoyment of the land, as it may be considered essential for boating, water skiing, and fishing activities.

The classification of a dock as an appurtenance can have legal implications, particularly in real estate transactions. In the case of a lakefront property sale, for example, a buyer may reasonably expect that the dock is included in the purchase as an appurtenance to the land. This expectation may be further supported if the dock is mentioned in the deed or patent, which often includes language referring to "all the rights, privileges, immunities, and appurtenances" that belong to the property.

However, it is important to note that the classification of a dock as an appurtenance may depend on various factors, including the manner in which it is attached to the real property, the intention of the owner, and the specific laws and regulations of the jurisdiction. In some cases, a dock may be considered a fixture, which is a type of personal property that is permanently attached to and considered part of the real property.

To determine whether a dock is an appurtenance or a fixture, it is advisable to consult with a local attorney specialising in real estate and water rights. The specific facts and circumstances of each case will play a significant role in determining the classification of the dock and the associated legal implications.

Dock insurance

If you own a boat, you may be wondering if your homeowner's insurance covers the dock where you moor it. This type of insurance typically only applies if the dock is on your primary residence, and you can protect your property for a covered event up to your policy's limits. However, insurance companies may differ in their treatment of docks as personal property or actual structures.

It is worth noting that certain types of damage may be excluded from dock insurance coverage. For example, damage caused by freezing, thawing, and the weight of water and ice may not be covered under your policy. Similarly, damage caused by a collapse, unless it is the result of a falling building, and flood-related damage are typically excluded. High winds that cause severe wave action and result in damage may also not be covered.

On the other hand, typical types of damage covered by dock insurance may include fire, wind, and hail damage, which are generally similar to the types of damage covered by standard homeowner policies. It is important to note that you may need to purchase additional "other structures coverage" to protect your dock adequately.

In summary, dock insurance is an important consideration for anyone who owns a dock or boat launch. While some types of damage may be excluded, having this coverage can provide financial protection in the event of unforeseen circumstances. It is always a good idea to review your policy carefully and consult with your insurance agent to ensure you have the necessary coverage in place.

Dock permits

If you're considering enhancing your waterfront property with a dock, it's important to understand the permitting process to ensure your project complies with local regulations. Dock permits are typically required for permanent structures or those involving extensive construction work. Permits are necessary to protect the environment, manage water traffic, uphold public rights of way, and ensure safe construction standards.

When You Need a Dock Permit

The requirement for a dock permit varies by location and the type of dock you plan to install. Here's a general overview:

• Permanent Docks: These docks usually require a permit due to their impact on the shoreline and potential effects on local wildlife and water quality.
• Floating Docks: Less invasive than permanent docks, floating docks often do not require permits. However, size, location, and local regulations may still necessitate a permit, especially in protected areas or busy waterways.
• Inflatable Platforms: These are usually not considered structures and rarely require permits.

Steps to Obtaining a Dock Permit

If you determine that you need a permit for your dock, here are the steps to follow:

• Initial Research: Understand your property and the specific characteristics of your shoreline, including any local challenges or restrictions.
• Contact Local Authorities: Reach out to the relevant local offices, such as the zoning office, department of environmental protection, or coast guard office, to obtain the necessary forms and requirements.
• Prepare Your Application: This may include detailed plans of your proposed dock, environmental impact assessments, and public notices.
• Review Process: Local authorities will assess the potential environmental and safety impacts of your dock, which may include public hearings.
• Receive Your Permit: If approved, you'll receive your permit, along with any conditions or restrictions that must be adhered to.

Location-Specific Considerations

It's important to note that dock permit requirements can vary significantly by location. For example, in Wisconsin, certain dock installations are exempt from permits. If you're replacing an existing pier built before April 2012, it's generally considered "grandfathered" and doesn't require a permit. Additionally, some size docks and loading platforms may fall within size criteria that don't necessitate a permit. Always refer to your local guidelines and, if needed, consult with professionals specialising in waterfront construction.

Dock maintenance

Regular Cleaning and Inspections

Keeping your dock clean is fundamental to its maintenance. Use a soft-bristle brush and a mild detergent to scrub away dirt, grime, insects, and algae. Avoid using a pressure washer on wooden docks as it can damage the surface; instead, opt for a garden hose with mild soap. Pay special attention to the areas where the dock meets the water, such as the pilings, which are prone to decay.

Regularly inspect your dock for any signs of deterioration, including warped planks, damaged handrails, and rusty hardware. Check that all bolts, screws, and nails are tight and not corroded. Create a calendar reminder to conduct these inspections at least quarterly to prevent minor issues from becoming significant problems.

Staining and Sealing

Staining and sealing wooden docks provide an extra layer of protection against the elements. Choose a high-quality, marine-grade stain that offers UV protection and is resistant to water damage. Staining enhances the appearance of your dock and extends the life of the wood by preventing rot and decay. Be sure to sand the dock and ensure the wood is clean and dry before applying the stain.

Safety Measures

Apply anti-slip coatings to your dock to enhance safety and reduce the risk of slips and falls, especially in wet conditions. These coatings are available in various forms, such as paints and adhesive strips, and are easy to install. Additionally, consider adding dock fenders, which provide a protective barrier between the dock and boat hulls, further safeguarding your dock.

Material-Specific Maintenance

The maintenance required for your dock depends on its material:

• Aluminum docks: Rinse regularly with fresh water to remove salt and debris. Check rivets and joints for wear and inspect for corrosion, applying protective coatings if needed.
• Steel docks: Regularly inspect for rust spots and treat them with rust inhibitors. Check welds and connections for fatigue and apply protective coatings to prevent corrosion.
• Wood docks: In addition to regular cleaning, staining, and sealing, inspect frequently for rot, splinters, warping, and loose boards. Replace damaged wood promptly to maintain structural integrity.
• Composite docks: Clean regularly with a mild detergent and water. Address any signs of wear or damage.
• Concrete docks: Keep an eye out for cracks and repair them immediately to prevent further damage. Remove algae and debris from the surface.
• Roofed docks: Inspect the roof for leaks, damaged shingles, or rusted metal. Clean gutters and downspouts for proper drainage, and regularly check the roof supports.

Dock Repairs and Replacement

Minor issues, such as loose boards, small cracks, and superficial rust, can often be repaired without replacing the entire dock. However, if your dock has significant structural damage, extensive rot, or severe rust, it may be time for a replacement, especially if repairs become frequent and costly. Consult a professional dock service provider if you're unsure about the extent of the repairs needed.

Frequently asked questions