Marina Dock Age

The owner of Blackjack Cove Marina on Old Hickory Lake is being sued by its insurance company, which said Blackjack Cove took advantage of a 2009 storm to hook the insurer into millions of dollars worth of renovation costs, according to a June 22 Nashville Business Journal report.

Owner Barton Bagsby disputes the insurer’s allegations. He said he has invested millions more than insurance paid out to improve the facility and that he is trying to get reimbursement based on the “replacement value” policy that he purchased.

New Hampshire Insurance Co., which is part of AIG, filed suit June 21 in U.S. District Court against Blackjack Cove and the marina’s lender, Commerce Union Bank.

At stake is nearly $2.6 million that the insurer has already paid out for marina repairs, as well as another $1.1 million in additional claims.

A storm in April 2009 heavily damaged the Tennessee marina, just days after Bagsby bought it for $2.5 million. Bagsby said that while he wanted to buy a “cash value” policy for the marina, New Hampshire Insurance Co. refused to write a policy unless it was for replacement value and that he did not have time to find another insurance carrier before closing on the purchase.

Bagsby had big expansion plans for the marina and spent nearly $5 million on renovations, such as additional docks, a new store and a new floating restaurant.

In its suit, the insurer describes the overall facility as having been in poor condition prior to the storm.

Bagsby, however, told the Nashville Business Journal that portions the insurer described as being in “above average” conditions made up 90 percent of the insurance claim. The storm damaged docks, keeping much of the facility closed during the 2009 boating season.