วันพฤหัสบดีที่ 25 มิถุนายน พ.ศ. 2552

Lawmakers call for new financing terms for boat dealers

A dozen members of the U.S. Congress delivered a letter Friday to Ben Bernanke, chairman of the U.S. Federal Reserve Board, and Timothy Geithner, secretary of the U.S. Treasury calling on the two to reclassify boats and recreational vehicles as an asset class in the Fed's Term Asset-Backed Securities Lending Facility, and to hurry up.


Lowering the so-called "haircut level" — the amount of an asset's value that may not be used as collateral — would improve liquidity for boat dealers, they said.

The haircut level for an average floorplan term of three years is 13 percent.

Using TALF funds for other lending requires an asset value exclusion ranging from 5 percent for prime credit cards to 16 percent for financing automotive rental fleets.

"We write to express our collective concern that the Term Asset-Backed Securities Loan Facility (TALF) is not proceeding with sufficient pace or with sufficient participation within the nonauto floorplan asset classes," the group wrote. "As members of Congress who represent many marine manufacturers and dealers we urge you to re-examine elements of the TALF program, and specifically the haircut schedule for nonauto floorplan asset-backed securities."

Does My Marine Insurance Policy Cover Earthquake Damage?

Generally speaking, the limits and exclusions of any insurance coverage will be spelled out in the language of the policy document that is issued by the insurance company.



Here, the reader is referring to a requirement of California law (section 10081 of the California Insurance Code) that provides that no policy of residential property insurance may be issued in California unless the named insured is offered coverage for loss or damage caused by earthquake.

The law in its current form was enacted in 1994 after the Northridge earthquake. Prior to that event, insurance companies were required to include earthquake coverage in residential insurance policies, but no provision was available to offer the insurance under a separate policy. After the Northridge earthquake, many insurance companies pulled out of California entirely, rather than being forced to include coverage in their standard residential homeowners’ policies.

The new law offered a compromise. Insurance companies may now exclude coverage for earthquake damage, so long as they offer a separate policy to the homeowner that does provide the coverage. The separate earthquake policy is therefore only required if the homeowners’ policy itself excludes coverage for earthquake damage. This helps the insurance companies because they may charge competitive rates for the homeowners’ policy without regard to the risks associated with earthquake coverage. The separate earthquake policies may better target the risk by charging substantial premiums, and requiring a deductible of up to 15 percent of the value of the insured structure.

Like homeowners insurance, the coverage and exclusions of a marine insurance policy will be spelled out in the language of the policy document. Marine insurance policies vary widely in the scope of coverage offered, but they do not typically exclude damage caused by an earthquake. However, even if such an exclusion were included in a policy, the insurance company would not be required to offer separate earthquake coverage, since the law that requires the coverage does not extend to marine insurance.

The reader asked whether his marine insurance policy would cover earthquake damage to his boat under various scenarios, such as in dry storage, on a trailer or in a marina. The answer is that the damage may be covered, or it may be excluded if his insurance policy does list a specific exclusion for earthquake damage, or it may be excluded by some other provision of the policy that has nothing to do with earthquakes.

Unfortunately, there is no simple, universal answer to this question. The reader will need to review the language of his policy, to determine the scope of coverage offered by the policy and the exclusions and other limitations (such as geographic limitations) that may apply. A maritime attorney experienced in insurance coverage issues should be consulted for more specific information.

วันพฤหัสบดีที่ 18 มิถุนายน พ.ศ. 2552

The Institutes Offer Helpful Hurricane Tips

June 16, 2009 -- The American Institute for CPCU/Insurance Institute of America offer the following article, "Hurricane Helpful Hints," by Donna J. Popow J.D., CPCU, AIC.

They often show up with little warning, bringing high-speed winds and torrential rain. These destructive forces of nature are unwelcome guests in any home.

Hurricane season is here. Are you prepared?

There are several precautionary measures you can take before the need arises:

Check your policy - wind damage is usually covered by homeowners' policies, but flood damage is not.

Buy flood insurance if necessary - water that accumulates in the street from rain or storm surge will be considered flood water.

Check the policy limit - make sure you can rebuild for the amount you are insured. See if you have Actual Cash Value coverage or Replacement Cost coverage.

Have a plan - know the steps you will take to prepare your home for a storm.
Gather supplies - have the supplies you will need on hand at the start of the hurricane season, such as pre-cut plywood and sandbags.

Secure your boat - if you own a boat, plan where you will take it in the event of a storm. Check your marina or dock contract to see if you are required to move the boat. Have the supplies on hand to prepare the boat for the storm, such as anchors, chains, and chafe protection.


When you receive warning of a storm, follow these guidelines before the storm arrives:

If ordered to evacuate, do so - take your homeowners policy, auto policy and boat policy or the agent's name and phone number or the 800 number for your insurers.
Take valuable items from your boat - take the loran, GPS, registration papers and log books. Do not try to weather a storm on board your boat.

Collect supplies if you're staying home - make sure you have food, water, medical supplies, batteries, candles and pet supplies for three to five days. Don't stock up the refrigerator, but do turn the temperature to its lowest setting so food will last longer if you lose power. Stay indoors and avoid trees and flying debris.


Follow these instructions after the storm:

Contact your insurer - advise your insurer of the damage. Give them a phone number where you can be reached, especially if you have relocated temporarily.
Prepare an inventory of the damage - take photos. Keep track of money spent and keep receipts. Make temporary repairs if necessary.

Check on your secondary home - make arrangements with a realtor or property manager to inspect it. Even if there are no visible signs of damage on the exterior there may be interior water damage.

Boating deaths up in Michigan


LANSING, Mich. (AP) - Boating deaths reached a six-year high in Michigan last year, according to a new report from the Michigan Association of Insurance Agents .

The organization said in an annual report that 36 boating deaths were reported in 2008, up from 35 in 2007 and the most since 2002, when 38 deaths were reported.

Boating accidents also increased last year, to 201 from 193 reported in 2007, though accidents were down from the 226 reported in 2003, according to the report.

Most accidents occur on Sunday afternoons in July, the group said. The most common accidents result from collisions with other vessels, falling overboard and capsizing.

"Whenever people consume alcohol and operate a boat, bad things usually happen," Gary Mitchell, spokesman for the Michigan Association of Insurance Agents, said in a statement. "After years of decline, the fatalities are beginning to increase again."

There were 927,914 boat registrations in Michigan in 2008, up from 830,835 the year before, the report said.

The group advises boaters to wear life jackets, avoid overloading a craft with passengers and make sure the boat has adequate lighting at night and safety equipment. Public awareness of boating laws and using life jackets are the most effective ways to reduce boat fatalities, it said.

Copyright Associated Press

วันพุธที่ 10 มิถุนายน พ.ศ. 2552

Boating: How to secure your boat when a hurricane threatens


The hurricane season is upon us, and the key to protecting your boat from hurricanes is planning, preparation and timely action. Your plan should include what you are going to do with your boat. Arrange for a friend to carry out your plans if you are out of town during hurricane season.


Boats remaining in the water: Double all lines. Rig crossing spring lines fore and aft. Attach lines high on pilings to allow for tidal rise or surge. Make sure lines will not slip off pilings. Inspect pilings and choose those that seem strongest and tallest and are properly installed. The longer the dock lines, the better the boat will be at coping with high tides. It is also essential to double up on all lines and use chafe protectors at any potential chafing points. Install fenders to protect the boat from rubbing against the dock, pilings and other boats. Cover all lines at rough points to prevent chafing. Wrap with tape, rags and rubber hoses. Make sure that the batteries are charged and that the bilge pumps are in working order. Take down canvas if you have it because because the wind will just tear it down.

Boat on lifts: Raise the lift up as high as you can out of the water so that the storm surge does not catch the boat and take it off the lift. Remove everything that is removable. Make sure the bilge pumps and batteries are working or remove the plug from the boat. Remove the batteries if you do remove the plug. Make sure the electrical system is off. Make sure the cleats are bolted with black plates.


Boats on trailers: Be sure your tow vehicle is capable of properly and adequately moving the boat. Trailer tires, bearing and axle should all be in good condition. Once it is at a safe place, let some air out of the tires. Remove everything that is removable. Remove the batteries, put blocks under the axles and fill the bilges about one-third with water. This will add weight and assist is holding the boat and trailer in place. An alternative to adding water would be to take the plug out and add some weight with a sand bag. It is not a good idea to tie the trailer to a tree, since trees are often blown over in a storm.


Boats in a marina: Double up all the lines and speak to the dock master. Check your rental agreement. Know your responsibilities and liabilities as well as those of the marina.


For all boat owners: Consolidate all records including insurance policies. Have a recent photo of your vessel. Be sure you have boat registration, equipment inventory, lease agreement and telephone numbers of appropriate authorities (harbor master, U.S. Coast Guard, insurance agent).


Remember, when wind and seas warrant, marine agencies remove their boats from service and will not be able to rescue foolish boaters.

Some basic tips to keep your boat from theft


So you think your boat is all safely buttoned up for the winter, tucked safely away in your backyard or driveway? Think again.

In Houston Texas, thieves stole four boats in just five days, stealing electronics, fishing equipment and other items. Even more disturbing, all of the boats were kept right behind the owners’ homes. Boat owners are a trusting lot and while one would not think of leaving the house with all the doors and windows open, boats are often left wide open and unsecured, equipped with all sorts of small and valuable accessories that can easily end up on eBay.

Boats are also so easily transportable, they’re particularly susceptible to theft. Each year, insurance claims for theft losses cost the industry and consumers millions. While some boat thefts are the work of sophisticated rings that target a specific type of boat, others are isolated crimes of opportunity by petty thieves taking small, but valuable, equipment.

Not surprisingly, Florida is the number one state for boat theft with 1,478 boats reported stolen in 2005 and 1,233 stolen in 2006, through Sept. 30, according to the National Insurance Crime Bureau, a non-for-profit organization of insurance companies that compiles reports of stolen boats, cars and other items. Texas is therd in the nation with fur hundred boat thenfts and four thoudand eight hundred and ninety one thefts reported from boats.

According to NICB, 6,849 boats were stolen nationwide through Sept. 30, and a total of 8,795 boats were stolen in 2005. Most of the top 10 states for stolen boats are year-round boating states such as Florida, Texas, California and other southern states, where there are more boats available to thieves as well as more homes, marinas and storage facilities that thieves can target (see chart).On a positive note, law enforcement agencies and prosecutors are taking boat theft seriously and making headway in arresting organized rings of criminals who often move boats across state lines for resale.

“This can’t happen to me” you say. Well guess again. What can we as boat owners do to help protect ourselves? Well we caqn do the following.Engrave all valuables including electronic equipment, outboard engines, radios, loose gear, etc. with the owner’s name, home port, state driver’s license or identification number, and the boat’s hull identification number.

Attach inverted, strong hasps and padlocks to all hatches and secure lockers with non-removable hasps and hinges and lock with strong padlocks. Remove all portable valuables from your vessel, thereby eliminating possible targets of the thief. Don’t leave radios, binoculars, cameras or laptops on board. Maintain an inventory list that includes all boat gear with the name, model, serial number, manufacturer, and description of each item. Digital images or photos of your gear could also go into this list. Never leave keys aboard a boat, even in a “hidden place.”

Any seasoned burglar knows all the spots to look. Don’t leave ownership papers on board the boat. Over night stays at a marina ,even one with good security you should check for one with locked gates and other barriers to keep both unauthorized pedestrian and vehicle trafficaway from the docks. Signs should be posted that clearly state marina regulations and access limits.Access to boats should be limited only to owners and other authorized persons. Look for one with good lighting. Lighting should be focused on access points and boat docks, security cameras are even better. As a boat owners you should get acquainted with their dock side neighbors and report suspicious “visitors” and activities.

When you leave your boat on a trailer away from your own watchful eyes you should think of removing the tires. As an added precaution against theft, be sure to remove the hub nuts and store them with the tires. Keeping your boat out of sight is less tempting to theives. If the boat has to stay in the driveway, don’t park it facing the street. Thieves may carry coupler devices that can be quickly attached to your trailer.smaller outboards should be taken off and stored in the garage along with your seats, batteries, electronics and fishing equiptment in side, they’ll hold up better when stored indoors as well.

Lock your wheels to the trailer. A length of heavy chain, or cable, run through each wheel and around the axle or trailer frame is a great deterrent to theft of the trailer or your wheels. Also, lock your spare tire. These few and simple tips could possible save you the boat owner thousandsof hard earned dollars. Even a small theft from a high performance craft can result in a expensive lesson that should’nt haver to be learned the hard way. Takes care of your equiptment and it will be there to take care of you. Remember spring is around the corner and we all want out big boy toys to be there when we’re ready to play so until next week keep only what you will eat and release the rest to fight again.
Mike Harber

วันพฤหัสบดีที่ 4 มิถุนายน พ.ศ. 2552

How to Slash Rates on Your Auto Insurance


Auto insurance is a mundane game, right up there with root canals and visits from the in-laws; they’re things people don’t want to experience, but have to.

So as long as you’re stuck paying auto insurance, at least you can find ways to cut the costs of buying it.

Here are some of the best ways that BankingMyWay found to do just that:

Order the “combo” platter – If you buy your home and car insurance from the same company, you save, as the commercial says, up to 15% off your car insurance. That’s the figure stated from the Independent Insurance Agents & Brokers of America.

Shop online – If you value a local insurance company in town, or a short drive away, skip past this tip. But if you don’t care where your auto insurer’s office is, go online for a great deal. Online auto-insurers tend to be short on great, hands-on customer service, but they’re very good on getting you lower rates, since their administration and operating costs are so low.

Leverage good credit – No doubt about it, the better your credit, the lower your auto insurance rates. Consumers with good credit scores of about 660 and above can expect good discounts at the auto insurance checkout counter.

Avoid collision insurance – If your car is paid off, or you’re driving around town in an aging, beat-up junker, your need for collision insurance isn’t a big one. By removing collision insurance, you can take up to 20% off your auto insurance. A note: without collision insurance, you’ll need some money set aside for “crash” emergencies, the amount of which should be based on the current Kelly Bluebook value of your car.

Raise your deductible – To lower your insurance rates, just raise your deductible. Raising your deductible from $150 to $500, or even $1,000, could save you up to 15% off your insurance rates.

Get a “two vehicle” discount – If you own more than one car, or even a car and a boat, ask your insurer for a multiple vehicle discount. To get your business on both vehicles, chances are your agent will green light a discount.

US boat buyers offered payment protection


PROTECTION: Taking a lead from the US auto industry, Brunswick has set up a payment protection programme for buyers of its Bayliner, Maxum and Trophy brands.

Under the protection promotion these three Brunswick boat brands will make the monthly boat payments for those buyers who may unfortunately lose their jobs due to current economic conditions, said Brunswick in a statement released on 22 May.

Bayliner, Maxum and Trophy will pay up to nine months of payments if the boat buyer loses his or her job within a year after the boat purchase.

‘In today’s economy, it is important to alleviate consumer concerns over many issues, including the potential of job loss,’ said Brunswick chairman and chief executive officer Dustan E. McCoy. ‘So, we’re addressing it in an effective and impactful manner within the marine community. These brands aim to restore some confidence for the American boat buyer so they can make their dream boat purchase this summer, because we stand behind them not only with quality products, but also with resourceful financing and insurance options.’

Payment Protection is offered for all models in the Bayliner, Maxum and Trophy brand lines, with the qualifying monthly payments going up to $500, McCoy explained.

The promotion started for the US Memorial Day weekend – which suns as the same time as the UK Spring Bank Holiday - to help them sell more new boats during this year's peak boat selling season, which Brunswick says continues through the Fourth of July weekend. Customers must take delivery of their new boats by 6 July.

‘These brands are among the first in the marine industry to launch such a large-scale payment protection program,’ said the president of Brunswick's US Marine and Outboard Boat Group divisions, Andy Graves. ‘We’re taking our cue from similar efforts that have been used successfully in the automotive industry by Hyundai, Ford and General Motors.’