Boat Owner Sued by Lloyd’s of London Over Denied Insurance Claim for Flood-Damaged Cruiser
A Florida-based boat owner is facing a declaratory relief lawsuit from his marine insurer after allegedly failing to report a vessel flooding incident for more than two years. Certain Underwriters at Lloyd’s of London filed suit against Miami-Dade County resident Jorge Roig in the Southern District of Florida under Case No. 1:25-cv-25562-DSL, seeking a judicial declaration that Roig’s insurance claim is not covered under his policy due to late notice, policy exclusions, and failure to mitigate.
Lloyd’s of London Seeks to Deny Marine Insurance Claim for Flooded Yacht Due to Delayed Notice and Corrosion Damage
According to the complaint, Roig submitted an insurance claim on September 2, 2025, under a marine policy covering his 2008 42-foot Cruiser-class vessel. The policy, which provided $175,000 in hull coverage subject to an $8,750 deductible, was in effect from October 2022 to October 2023. Roig reported that his yacht had suffered extensive water damage due to a failure of the generator’s raw water pump in or around May 2023, leading to a prolonged seawater discharge into the engine room.
Lloyd’s argues that the notice came over two years after the alleged incident, in direct violation of the policy’s requirement that losses be reported “immediately.” The insurer claims it was deprived of the opportunity to inspect the vessel promptly, mitigate additional loss, or evaluate the damage in its original state. Under Florida law, delayed reporting creates a presumption of prejudice to the insurer, and Lloyd’s alleges that such prejudice occurred here, warranting a full denial of coverage.
Marine Insurer Alleges Corrosion Damage and Improper Mitigation Render Florida Yacht Claim Excluded Under Policy Terms
The lawsuit further argues that even if notice had been timely, the nature of the damage falls outside policy coverage. Specifically, the hull insurance contract excludes losses caused by “gradual deterioration” and “corrosion.” In a post-loss survey conducted on September 12, 2025, surveyors found severe rust and corrosion affecting the vessel’s generator, engine components, pulleys, and electrical systems.
Photographs submitted in support of the complaint show significant oxidation on engine mounts, generator housing, and various fittings aboard the vessel (see Page 4 of Complaint). The insurer alleges this damage would have been preventable had Roig complied with post-loss obligations to flush, oil, and dry the affected areas or hired a third party to perform proper corrosion prevention.
Lawsuit Claims Boat Owner Failed to Protect Yacht After Flooding, Violating Marine Policy Obligations
Lloyd’s of London claims that Roig personally attempted to clean the engine room but failed to perform necessary mitigation tasks. The policy explicitly requires immediate protective action, including drying and oiling motors and components after any submersion. The insurer argues that Roig’s do-it-yourself efforts were inadequate and allowed corrosion to set in—turning what might have been a repairable incident into a total loss.
As a result, Lloyd’s seeks a ruling that it owes no coverage under the policy and asks the court to confirm that any damages suffered by Roig are excluded, in whole or in part, due to breach of policy terms related to notice, mitigation, and covered causes of loss.
Marine Insurer’s Lawsuit Highlights Importance of Prompt Reporting and Mitigation After Yacht Damage
This case underscores the importance of timely reporting and strict adherence to post-loss procedures in marine insurance claims. Underwriters frequently cite policy exclusions for corrosion, gradual wear, and failure to mitigate as grounds for denying claims. Boat owners are urged to understand their obligations under marine policies and to document all loss events, repairs, and mitigation efforts carefully.
For those navigating a denied marine insurance claim or facing insurer litigation, understanding your legal rights and responsibilities is critical. If you are involved in a dispute over vessel damage, policy coverage, or post-loss obligations, contact an experienced maritime insurance attorney today.
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Disclaimer: Our firm does not represent the plaintiff or defendant in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.
