Another boat fire

[bligh]

Or "Another loss in Anacortes"

Pacific Northwest Boating News: Fire destroys boat at Anacortes Marina | Three Sheets Northwest

 

[bligh]

anyone in Anacortes have an update on this? 'Rumour' is that it was a charter boat.

 

[GFC]

Bad things seem to come in three's. Here's another PNW boat destroyed by fire...

Pacific Northwest Boating News: Coast Guard saves two from burning vessel near Destruction Island | Three Sheets Northwest

 

[Capt Kangeroo]

Not that they really need any, but sooner or later all these fires are going to provide the justification for Insurance companies to raise our rates.

 

[Art]

Not that they really need any, but sooner or later all these fires are going to provide the justification for Insurance companies to raise our rates.

Few years ago when east coast hurricanes caused massive marine damage - my west coast insurance cost doubled! I understand "spreading the risk", but, my boat is kept deep inside m-e-l-l-o-w SF Bay Delta fresh waters - under covered floating dock. Sudden 100% rise in cost to my ins. was/is a bit much! I wonder if boat ins. in hurricane areas increased same %age... or more???

 

[Moonstruck]

Few years ago when east coast hurricanes caused massive marine damage - my west coast insurance cost doubled! I understand "spreading the risk", but, my boat is kept deep inside m-e-l-l-o-w SF Bay Delta fresh waters - under covered floating dock. Sudden 100% rise in cost to my ins. was/is a bit much! I wonder if boat ins. in hurricane areas increased same %age... or more???

Art, the answer is Yes. However, we do appreciate your contribution. I can assure you that it went to a good cause.

Insurance companies operate under the "law" of big numbers. In other words, sharing the risk around. There are a lot of things that affect insurance premiums. Casualty losses being one. One of course is market competition. Something that is not really thought about much is investment income. When investment income is rolling along policies can be written at cost of claims plus overhead, and still make a nice profit from the invested premiums. Let's say that overhead runs about 30-35% of premium. That covers all agency commissions and company overhead. Claims expense is considered a cost of the claim. When the market competition will not allow premium increases they will sometimes lose money for a year or two. When the market hardens premiums will go up greatly to recover losses. We will see a soft market again. The companies will have to get hungry again, and the economy will need to get back to normal.

There is another little thing that has great affect on premiums. The state insurance departments have some fairly strict requirements on liquidity. This can bring an increase in premium to bring ratios back in line. A bad year of claims can be bad for everyone.

 

[Rambler]

And policy prices will vary some based on the location of the home port of the vessel, and it's intended cruising area. The more protected, the less risk, it'll be lower than in areas that frequently have catastrophic weather events. Basically whatever their "claims area" is.

 

[Jbear]

I saw the fire when I came home. We live on our boat one marina up from there. It looked like they got a couple of small lines on it early and then they disappeared. It really started to burn before they got the big lines on it. Then of corse it looked like they were trying to sink her with water.

I also heard of another on the water fire the 6th of July coming home from Spencer Spit. It was a 55 foot wood Monk. They reported they hard ONE fire extinguisher on board...never heard how it turned out.

Jeff

 

[Jbear]

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