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You guys need to look past the myopic premium view. How does insurance work?
1. its a buisness 2. it needs to make money to survive 3. that means it has to take in more than it pays out. , So say you insure a hundred 150+ mph cat at 10k yearly premiums... so you have taken in $1,000,000. You have one cat that flips killing 2 and putting 1 in the ICU for a week, with surgery and rehab, another cat is stolen. so thats $850,000 to replace the stolen one +850 for the one that flipped +350,00 in medical. So your insurance company has paid out 2 years worth of premiums and is now into deficit spending to cover buisness expenses such as licensing, rent, employees etc.... |
Originally Posted by phragle
(Post 4434349)
You guys need to look past the myopic premium view. How does insurance work?
1. its a buisness 2. it needs to make money to survive 3. that means it has to take in more than it pays out. , So say you insure a hundred 150+ mph cat at 10k yearly premiums... so you have taken in $1,000,000. You have one cat that flips killing 2 and putting 1 in the ICU for a week, with surgery and rehab, another cat is stolen. so thats $850,000 to replace the stolen one +850 for the one that flipped +350,00 in medical. So your insurance company has paid out 2 years worth of premiums and is now into deficit spending to cover buisness expenses such as licensing, rent, employees etc.... Everyone understands the business end of it. No one likes it. |
Originally Posted by tmmii
(Post 4434354)
Everyone understands the business end of it. No one likes it. |
Originally Posted by Orthobam
(Post 4434324)
My guess is his insurance is less than $10k/year based on what I pay and have paid prior to 2 years ownership.
No one in this game worries about $10k premiums when you are protecting something like this and every time something breaks it's $10k or more. You pay less in LOTO....older hull, shorter season. |
Originally Posted by Nate5.0
(Post 4434335)
Yes it does
If we are taking bets here.....Guestimating his experience and value I would say he's under $7500/year no layup. |
Originally Posted by Jupiter Sunsation
(Post 4434372)
Sy outlined the estimates for big power stuff in Florida, 12 month season.
You pay less in LOTO....older hull, shorter season. Insured value does I pay to go to Florida No layup I'll bet you a bottle of winners choice that he pays less than $10k/year. I've lost bets before and always pay up (lost a bet to Cash Bar - that really sucked).....but I also always collect :) |
Originally Posted by Orthobam
(Post 4434389)
No it doesn't. Once you are committed to this....it doesn't matter. I've lived it, do not have a jet and have to watch my budget. When you get to that point insurance premiums will not stop you.......it's like crack....You will rob your kids piggy bank to make sure you can run that boat.
If we are taking bets here.....Guestimating his experience and value I would say he's under $7500/year no layup. Maybe not to you but to many it does. Budgets are budgets for some people |
I have a budget
I drive a F150 to the lake and fly commercial to Florida. If you want a cat then insurance is not the limiting factor. |
Guessing it's worth 400k max
if he is on year 3 or greater then he is paying under $7500 or he needs a new broker. |
Originally Posted by Orthobam
(Post 4434392)
I have a budget
I drive a F150 to the lake and fly commercial to Florida. If you want a cat then insurance is not the limiting factor. Now if you drive a 97 f150 then I get it. |
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