The minimum premium for this endorsement as to an owner’s policy is ten percent (10%) of the premium for the owner’s policy. The minimum premium for this endorsement as to a loan policy is ten percent (10%) of the premium for the loan policy OR, if the loan policy is being issued simultaneously with an owner’s policy, the minimum premium is ten percent (10%) of the total premium for the owner’s and loan policies.
This endorsement may be given on both an Owner’s Policy and a Loan Policy and applies to those cases in which the insured land is “filled land” in formerly navigable waters such as the Atlantic Ocean or Gulf of Mexico and their various bays and inlets together with various navigable lakes and rivers. Although the owner has good title to the filled land, the United States government, pursuant to the Commerce Clause of the U.S. Constitution, has the right to take any and all action necessary to aid the flow of commerce over the adjacent waterways.
This would include the right to dredge the land and install aids to navigation on the lands, all without any compensation to the owner of the formerly navigable waters.
In such cases, the proposed insured may request issuance of a Florida Navigational Servitude Endorsement. The endorsement specifically insures against loss or damage from the “forced removal” of improvements in connection with the exercise of these rights. In most cases, the property will be located in an area in which there is little possibility that “forced removal” of improvements will be necessary to aid navigation and the endorsement can be given.
However, if the insured premises are located in an area where dredging of the land, or removal of docks or marinas, may reasonably be necessary to widen a channel or otherwise provide for better navigation, this endorsement cannot be issued. (Example: if the subject property is located on a beach along the shores of the Atlantic Ocean or Gulf of Mexico far away from either an existing channel or inlet, the possibility of the exercise of the rights by the United States would be highly unlikely and the coverage may be given.)
