Insurance for boats affected by LA fires?

[Hydraulicjump]

The forum has had long discussions about the consequences of hurricane damages on boat insurance for everyone. But do natural disasters in general impact insurance across the board, or is there enough of a wall between boat insurance markets and homes and businesses, including the massive reinsurance market? All of this is taking place in a world where insurers are factoring in the increases in intensity of natural disasters, so insurance rates are on the rise no matter where you keep your boat. But we have Chubb marine insurance and have been happy with the service and price. However, they will be, as a company, paying out many billions in insurance claims. Moody’s estimates up to $30B in insured damages and the fires are not out yet. I have to believe there is a ripple effect, but don’t know. There are insurance experts on this forum who can weigh in.

And just about all of us in California are touched by this tragedy. We lost my sister’s house, the place of 35 consecutive Christmas gatherings. We only have memories left, but thankfully they are alive.

 

[slowgoesit]

Many insurance companies have diverse holdings and insure across many different venues, such as homeowners, auto, life, etc.
In a perfect world, natural disasters like all the homes and business losses in California from the fires will not impact boat insurance premiums, but this is not a perfect world, and whether a specific insurance company insures across the spectrum or not, expect your boat insurance rates to rise because of the fires, even through I've not heard of any large quantities of boats in marinas, or at anchor being lost due to the fires. Granted there will have been many smaller boats lost at house, or in driveways, but overall, probably not a large $$ number when compared to the loss of $$ from insured houses or businesses.

Any excuse to raise rates will likely be fastened on to to justify rate increases. And the increased profits generated from those increases will likely not go to pay off claims, but rather to pay ever increasing dividends to share holders and private equity firms that have holdings in insurance companies . . .