January 16, 2006
South Florida boaters with a plan about how they will protect their
vessels if a hurricane hits will receive reduced policy rates and
added or increased deductibles for storm losses according to a
spokesman for Inamar Recreational Marine, the marine underwriting
division of Ace USA in Philadelphia, Pa.
Hurricane Wilma in Florida 2006
"We're just trying to take some measured approaches that are going
to keep us in the business," Peter Lafontaine, vice president of
marketing and business development for Inamar told the Palm Beach
/Post/.
"The last thing we want to do is to have to withdraw from the
market. If you're going to be in the marine insurance business,
Florida has to be part of your strategy," Lafontaine said.
It's no surprise that Florida's insurance prices have gone through
the roof after the 2004 and 2005 hurricane seasons left billions of
dollars in damage to homes across the state. The same is true for
the boats.
With more active storm seasons in the forecast, marine insurance
rates are going up, agents say. Just how much depends on the value
and size of the vessel and the experience of the boater.
Insurers are no longer just raising prices. Since the past two
bewildering and costly hurricane seasons, marine insurers are
forcing boaters to take more steps to protect their property if they
want their losses covered.
"Some owners do all the prep work, while others say, 'That's why I
have insurance,'" say some boat owners. More insurers are
requiring boaters to have a plan for how they'll protect their
vessels if a storm hits.
Insurers are getting tough with folks who
live up north but keep their boats in Florida, sometimes requiring
full-time captains to care for boats when owners aren't around or
simply prohibiting insured boats from being in Florida during
hurricane season.
"All of them are reevaluating not only their rates but also their
exposures in these catastrophe-prone areas," explained Jim Holler,
senior vice president of marine insurance for the Boat Owners
Association of The United States, or BoatU.S., an Alexandria,
Va.-based advocacy group for recreational boaters with more than
625,000 members. "That means coverage is getting tougher to find as
insurers try to limit their risks in Florida, a market that has both
a lot of boats and a lot of storms."
Ace USA is making a push to boost its business on the West Coast and
in the Great Lakes area to balance its risks in Florida, Lafontaine
said. Others are limiting their number of policies in Florida. And
some may pull out of the market.
Florida law does not mandate insurance for boats. But lenders
generally require it for financed vessels. And many marinas will
insist on at least liability coverage for boats stored in their slips.