Originally Posted by dohenyboy
About insurance--do you have a bicycle? Do you have liability and replacement insurance? Why not? How can you be so irresponsible?
of thought is that you should never own a boat worth so much that you need to have hull
insurance to protect your financial stability.
Self insurance is a valid concept
and it has the opportunity for real cost savings.
I suppose if third party liability is required one has no choice, unless it is financially worthwhile to set up a captive insurance company.
Why can't things remain where i carelessly left them?
That's kind a silly post on many levels.
1) How much money
do you lose if you lose your bike? If its a REALLY NICE BIKE you might get to $2K but most are worth a lot less - a few hundred bucks, max.
2) And how much damage can you do? You can cause an accident
which kills someone, true, but you aren't likely to do $50K worth of damage or more if you drive into a parked car. The most likely person to die is you.
And if you DO have any assets or net worth, you can and probably should get a Blanket Liability policy in the sue-happy U.S.A. We did, just the hint that you have assets gets some people thinking about falling on the sidewalk in front of your house. If you have no assets there is nothing to lose, if you like your house, cars and non-retirement investment portfolio you may think differently about being hit with a $2 Million Wrongful Death suit. That will wipe most people out, even from riding a bike.
3) You are seriously suggesting no one ever buy a valuable boat? Or that the limit of boat value should be "what you could lose without insurance?" What fiscal nonsense. If my boat sunk tomorrow without insurance would it break me? No, but it would be really financially unpleasant to pay off a note on an asset out of my savings when that asset is destroyed. Boats are like cars and houses in that regard. I can mitigate my risk in the transaction by insuring the asset against loss - this is the point of insurance. The annual premium for me is something I'd rather pay than coughing up 30-40 times that amount if I had to pay off the mortgage in a hurry.
4) Self insurance...yeah, for your own damage to your own boat. If you drag down on the 500K yacht next you you and put him on the beach I don't think your "self" will be able to cover that as well as your own more modest boat.
You always have a choice. You can stay out of marinas
, and risk your financial future every time you sail. You can take a chance on doing a lot more harm to other people that you can possibly compensate them for.
Not everyone chooses to operate that way.