That is, of course, the self centered and usual way that people who are not
affected look at a devastating situation.

The national flood insurance program has clearly allowed otherwise
undevelopable beach front areas to be developed. They now represent much of
the most valuable, most enjoyable, most sought after, highest tax paying areas
of our Nation.

They also are the Country's most loved vacation destinations... obviously now
of huge financial and emotional importance to America.

Again, obviously, Flood Insurance could have never accomplished all that if
operated in the spirit of only private profit and without nationwide sharing
of the cost. Profit is vitally important in our free enterprise system. But it
only works well if those who who would cheat or damage others for profit are
moderated.

We see the same thing now in Iraq. It is only when people come together and
put aside at least a little bit of their own personal interests that the
prosperity we've built in America really works.

Let's not forget the time, just a few years ago, when in many, many small
company health insurance plans...when one employee got a major illness which
was said to be "covered"...the insurance company was "free" to just throw that
person out and let him or her die...or just raise premiums in that one group
until no family could afford medical care, and everyone was at risk of losing
everything they had in an illness.

Sensible legislation required the insurers to spread the risk out over a wider
"group" which made life safer and fairer for all of us.

What risk management is all about is not allowing corporations to let people
die for a greater profit...nor for only the very rich to be able to have a
boat. Risk management is about spreading the risk widely so everyone shares
fairly in the many, many risks that are faced in different parts of our
nation...it seems to me. In other words freedom, free enterprise, and fairness
exist better when working well together.

I take that view as a lifelong business owner, manager and a political ultra-
conservative.

Jim
jkeirbaughman@cox.net

----- Original Message -----
From: Michael E. Negley
To: jkeirbaughman@cox.net
Sent: Monday, January 09, 2006 12:42 PM
Subject: T&T: Insurance Question

Property insurance is a "risk sharing" proposition, not risk absorbing.  A
company that sells in all states cannot remain competitive by passing on the
cost of higher claims in a few states to all states.  BoatUS is simply an
agent.  CNA is the carrier and to remain in business they must compete against
other carriers who do not sell marine insurance in high risk states like FL.
If the FL legislature would permit it, CNA would not write any marine
insurance in FL.  The plain truth is that we are lucky to get insurance at all
and someday we may not.  There is no level playing field in the private
insurance business.  Carriers are free to accept or reject the risks they want
which is what risk management is all about.  The Federal Flood Insurance
program is a disaster because it has encouraged people to build in flood prone
areas (poor risk management).  FL's state risk pool is another disaster for
the same reason.  If folks want to live on the gulf coast they simply have to
accept the risk of either self-insurance or paying very high premiums or they
can move their boat to another location which is less hurricane prone.
Actually, the cutoff is about the Georgia/South Carolina border where premiums
drop significantly.  For many it would be less expensive to move their boat
further north from June to November each year even if they paid a delivery
crew to do it for them.

Mike Negley

Safety Harbor, FL

My insurance for a 34 Californian, 12 months in Miami,  just renewed and it
is for the same as last year. It is with Markel through Al Golden

Greg Han

(SNIP) Risk management is about spreading the risk widely so everyone shares
fairly in the many, many risks that are faced in different parts of our
nation.

I would argue risk management at the individual level is about deciding what
risks should be mitigated and applying resources accordingly.  For those of
you who haven't suffered through my TrawlerFest presentations, I spend a lot
of time recommending cruisers mitigate risks based on probability, NOT
possibility.

I see people buying life rafts for Bahamas crossings who don't even have
basic spare engine parts.

My advice, in lieu of paying absurd insurance premiums, is to secure
liability only insurance, develop and test a hurricane plan (like Bob
Austin's), and bullet-proof your ground tackle and lines. Taking the time to
research hurricane holes around your normal cruising grounds and perhaps
contracting with folks in those areas for space is an important exercise
toward being truly prepared.

I've opted for a hurricane mooring strategy. I've got a 2,200 lb mooring in
Point Judith RI and I just installed a 1,200 lb mooring here in Bond Creek,
each of which were less than one year's hull insurance and only require
minimal maintenance every 3 years.

Curmudgeon has withstood 120 knot winds from Hurricane Bob on her own ground
tackle so I know the boat is pretty happy setting to the wind.

It's really not a difficult spreadsheet exercise to fund your own hurricane
plan. The bottom line is mitigating your own risks, based on events and
costs you can control might be more cost effective than sharing everyone
else's risks and writing that huge premium check.

As always, YMMV...

                                      Regards....

Phil Rosch
Old Harbor Consulting
M/V "Curmudgeon" MT44 TC
Currently lying Bond Creek, NC