Here we go again with Insurance issues

[GypsmJim]

I imagine that many boats and homes will be destroyed by Ian. Even if you live in a nice quiet safe area with no chance of a hurricane, tornado, etc, (and that's WHY you live there) your marine and homeowner's insurance will skyrocket next year so that the companies can recover their losses.

 

[Jaybeaux]

By definition, insurance is "pooled risk", is it not?

 

[highslice]

By definition, insurance is "pooled risk", is it not?

It is.

 

[yobub]

And here we go again with inventory issues. Boats destroyed, cars destroyed, huge new demand for building materials, clothing, furnishings, etc. Prices are going up again.

 

[MonacoMike]

By definition, insurance is "pooled risk", is it not?

Shouldn’t the “pooled risk” be paid by those with comparable risks?

 

[Pirate Lady]

Would be nice but the larger the pool the less the cost to each.
Oh, and I want to thank you all for contributing to my new house when it burned down in 2014.

 

[GypsmJim]

I understand the pooled concept. I just don't agree with it because its not fair to the people that live a cautious life.

You can build a house on a canal in Tampa with a backyard a mere 2 feet above sea level. That's your right. But it should be you that is taking the risk, not me.

If your house burns down, I'm happy to be in THAT risk pool. We all share that risk (unless you built next to a sometimes active volcano....LOL)

 

[Golfman25]

Well what I am not getting is I see a number of small trailerable type boats still in the water. I thought insurers wanted the boats out of the water during the storm.

 

[b_arrington]

I understand the pooled concept. I just don't agree with it because its not fair to the people that live a cautious life.

You can build a house on a canal in Tampa with a backyard a mere 2 feet above sea level. That's your right. But it should be you that is taking the risk, not me.

If your house burns down, I'm happy to be in THAT risk pool. We all share that risk (unless you built next to a sometimes active volcano....LOL)

That’s why your policy costs more if your risk is higher. My boat insurance cost dropped when in brought it home to NY from SC. Also, costs are much higher if your boat remains south in hurricane season.

 

[hottoddie]

I understand the pooled concept. I just don't agree with it because its not fair to the people that live a cautious life.

You can build a house on a canal in Tampa with a backyard a mere 2 feet above sea level. That's your right. But it should be you that is taking the risk, not me.

If your house burns down, I'm happy to be in THAT risk pool. We all share that risk (unless you built next to a sometimes active volcano....LOL)

Speaking of Florida which has very high car insurance rates. 25% of cars on the road in Florida are uninsured so 75% of the drivers that are insured pay higher rates. In todays world of technology it would be easy to identify and get those cars of the road until fines are paid and insurance is obtained.

 

[FootballFan]

Shouldn’t the “pooled risk” be paid by those with comparable risks?

Have you priced boat insurance in Florida lately?

I know when we moved our boating experience from inland to Florida several years ago the cost of insurance was a very significant increase.

Even within Florida significant difference in rates based on "where" in Florida.

I have no idea if the allocation of risk/cost of coverage across the country is an equitable formula or not. I also don't know how insurance companies evaluate and determine policy costs they charge. Do they approach on a state by state basis and focus on the "Florida" pool versus the "non Florida" pool? I don't know.

Do have a pretty strong feeling that the total dollars contributed to the "pool" for boat insurance is greater than any other area of the country. I don't have the hard numbers to back that up, so just my feeling.

 

[MonacoMike]

That’s why your policy costs more if your risk is higher. My boat insurance cost dropped when in brought it home to NY from SC. Also, costs are much higher if your boat remains south in hurricane season.

Information from the insurance companies themselves in the past has said that rates in other markets were raised because of losses to hurricanes. Probably nothing is a greater loss risk than a hurricane and many of us in safe areas of the country are tired of funding it.

This crap is an outgrowth of national insurance rather than regional companies that keep the market honest.

 

[yobub]

Data isn't specific to marine, but here is an early industry read on the situation as of yesterday:
https://www.insurancejournal.com/news/national/2022/09/28/687154.htm

For those who don't want to read boring insurance language, early estimates are total loss of between $20 billion and $40 billion, with the top 10 Florida carriers owning 55% of the market by premium (2021 data). Only 4 of the top 10 are the brand-name companies you would recognize.

The largest, Universal Insurance Holdings, writes 83% of its premium in Florida, so clearly a regional carrier. Like most insurance companies, Universal uses reinsurance to spread its risk to other companies, so they aren't going to eat all of this, but the loss still gets spread through the entire insurance ecosystem.

 

[mrsrobinson]

Pooled yes, shared risk yes, and folks forget they are collecting, and investing, our premiums; they don't store in a piggy bank. And the employees who mange the investing are not hurting for money.

I worked in the Insurance Industry for 8 years out of college and have no sympathy for them.

Medicare/Medicaid works the same, I pay more to cover the folks who don't.

 

[GypsmJim]

Medicare/Medicaid works the same, I pay more to cover the folks who don't.

EVERYONE needs health insurance. It's just like paying school taxes even if you have no kids.

Owning a boat or a house is optional. I opt to live in a safe place, yet I'm penalized by those that live in hurricane alley.

 

[Golfman25]

Pooled yes, shared risk yes, and folks forget they are collecting, and investing, our premiums; they don't store in a piggy bank. And the employees who mange the investing are not hurting for money.

I worked in the Insurance Industry for 8 years out of college and have no sympathy for them.

Medicare/Medicaid works the same, I pay more to cover the folks who don't.

I was with Allstate after Andrew. Their big problem was they where way overexposed in Florida. Their remedy was to cancel and non-renew everyone they could which made the regulators go nuts. Need more insurers to spread the risks. Also to help lower costs, just need to rebuild the house, not replace all the personal stuff.

 

[royalpiper]

Could we see the day when in places like Florida the only policies available will be liability only, not replacement value or storm repair reimbursable?

 

[Golfman25]

Could we see the day when in places like Florida the only policies available will be liability only, not replacement value or storm repair reimbursable?

I doubt that because lenders won't lend. But back then Allstate policies replaced everything, including landscaping. IMO you get your basic structure back so you can live, but replace everything else over time on your own.

 

[royalpiper]

Sorry, I should have said in regards to boats.

 

[FootballFan]

Could we see the day when in places like Florida the only policies available will be liability only, not replacement value or storm repair reimbursable?

NJ had Sandy, maybe we should restrict anything other than Liability there?

Or how about if the government sets up a new agency, with czar to see if they could manage recreational boat ownership?

Don't they see, how all these people who love boating is making it such a mess?

Sorry, couldn't resist a bit of tongue in cheek...