T&T: A nagging question

[Ownyacht at aol.com]

Good point Al. 
 
Would one be living in a dream world to expect rates to go up in Texas and  
down in Florida like the old days? To answer my own question: No, you idiot,  
they will go up in both places".
 
Doc
 
 
In a message dated 9/18/2008 1:51:58 P.M. Eastern Daylight Time,  
Al at IMIScorp.net writes:

>>An old question comes to mind that always lurks in my brain when  I
look at
damaged boat pictures like those we are seeing as a result of  Ike.<<

>>Why should an insurance company pay for any  salvage or damage
suffered as a
result of manifest lack of storm  preparation?<<

Well, as you can imagine, that's a tougher  question for me to answer!

However, there are a few points to be  made:
1. With the hundreds upon hundreds of boats damaged, you can  imagine
nearly every one with a denied claim would file suit against the  insurer
to make them PROVE their negligence. Our courts are a bad enough  mess
without that.
2. 99% or more of the boats are toys, big, expensive  toys, but toys.
Folks with homes, businesses and families to protect are  going to move
their toys way down the priority list.
3. Many, many  people live in the interior, hundreds of miles from their
boats. Should  they then make plans to have someone else remove their
canvas, electronics,  etc? Sure, but will an insurer get away with
denying a claim if it doesn't  work out for some reason? Not likely.
4. Another obvious problem is that  some people find themselves unable to
attend their boats because they're  ill, a family member is ill, or
they're away on a trip somewhere. Should  they then prepare their boats
(or have them prepared) before any threat?  Yes, of course, but all of
the same problems present for the insurer.
5.  The companies have gotten better at moving more of the risk to  their
insureds, by higher deductibles for named windstorms, deductibles  that
apply to total losses, etc.
6. Most do require coastwise risks to  fill in a Hurricane Preparation
form, which does NOT serve as a warranty  that the stated plans will be
followed, but does, at least, make the boat  owner think through what
he'd do.
7. Most also now provide coverage,  typically 50% up to $500 for
prophylactic haulouts, etc. However, in this  office, we do caution
insureds to think twice before putting in minor  claims that might result
in loss of loss-free credit.

Many years ago  I was at a crab feast in back of my neighbor's house who
was embroiled in a  fence war with his neighbor on the other side.. I was
sitting across the  table from their attorney, and said to him "isn't it
a shame that this  fence has created such bitter feelings between them."
His answer was "no,  that's how I make a living."

Does it make me sick to see the photos of  tattered biminis, shredded
furling sails, etc. Of course, but....

Al  Golden
International Marine Insurance  Services
1-800-541-4647
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