Originally Posted by Ostriman
Mine was written by multi-line agent. This year they dropped coverage here in the Gulf Coast area, wait for it....because hurricanes tore up a bunch of boats. Agent switched us to different carrier at a higher premium, again because of good old Harvey! I have had no claims or suffered any loss. You bet the boat is going to be destroyed, they bet it will float gently in my marina!
All part of the reality of insurance- highlighted by Falvey Insurance shuttering itís doors after handing in $70m of losses due to a single storm.
Insurance is a pool- a bet that something will not happen. If it does, you have a financial partner to assist with repairs or to stroke a check for the total loss.
All this for a yearly premium that is a fraction of the actual value of the boat.
Losses do happen, and insurance is there to assist. Massive losses caused by storms will affect the market in the form of higher premiums, refusal to offer coverage in hurricane prone areas, or (like Falvey) closing the doors and shutting down the business unit.