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I emailed Kent yesterday, that I was going to stop responding to posts on this subject ,as I don't want to take the time or clog up this site. But the 2% proposed deposit into a reserve fund ,was a one time deposit, which upon leaving the group, you would receive a 50% refund,provided you had not made any claims during your membership. With the group protecting you from a total loss ,perhaps an owner may chose to continue full coverage , but could insure his boat at a much lower fixed value ,which should result in a much lower annual premium. If you parked $4000. in the reserve fund and it lowered your premium by a significant amount ,it could be a good return on your deposit .
However ,I agree and related this to Kent ,its like herding cats , I have read comments that were based on false assumptions or the misinterpretations of what was originally proposed and I felt compelled correct them,can't keep doing it. For this to work ,it would need to be lead by someone well organized, it would have to be kept simple and limited in scope. I have said that ,it may be a case of a good idea whose time is yet to arrive. If underwriters continue to leave the market ,and coverage continues to shrink and continue to get more expensive ,its time may arrive .
But I don't think it is now, I did not make the original post on this subject , but I have proposed some plans for it, and believe it has merit, if an Amel Risk co-op ever evolves , count me in. But for now ,I will now respond to further discussions on this site , as often a subject goes on and on , clogging the site without end.
From: Mark Erdos <mcerdos@...>
Sent: Fri, May 22, 2020 6:15 pm
Subject: Re: [AmelYachtOwners] Insurance
Not wanting to poop on this idea, I am in favor or the concept, but the proposed numbers just do not seem to work.
If I am to contribute 2% of the insured value of my boat, this amount is greater than what I am currently paying for my current company provided insurance (with minimal deductable and liability included).
Just my 2¢ but to think 200 owners would agree to this is IMO a bit of a pipe dream. Getting 10 people to agree on anything is difficult let alone 200.
Also, the idea of an assessment is frightening to me. Being at the mercy of others concerning my out of pocket expenses is very unappealing.
Perhaps the more reasonable approach is to join an association such as the OCC and utilize their recommendations and discounts pre-arranged for members at Top-Sail. I am not sure but, there might be other groups about the world. Or, form a group to obtain group-rate policies as someone else suggested we can favor one particular insurance company. However, the latter suggestion has already been pursued by Bill Rouse to no avail.
One last thought is licensing. Without valid verification, it might be impossible to stay in marinas etc. or for those that need it, a mortgage on the vessel.
Just my 2¢ worth.
Regardless of the outcome of this thread, I would like to see members of this group continue discussions as they find good options for their Amels.
With best regards,
Sailing Vessel - Cream Puff - SM2K - #275
Currently cruising - Tahiti, French Polynesia
From: <main@AmelYachtOwners.groups.io> on behalf of "karkauai via groups.io" <karkauai@...>
Date: Sunday, 17 May 2020 at 3:22 pm
Subject: [AmelYachtOwners] Insurance
Given the insurance problems everyone is having, I thought I'd see if there is enough interest and/or expertise to pursue an AYOG self-insurance program.
Pat (Shenanigans) and I have talked about it a little. Here's the gist of what we discussed:
1. A buy-in of some percentage of your boat's value that would be enough to cover the first year. For example, a $300,000 SM owner might pay 2% or $6,000. If we had 200 similar owners, we'd have $1,200,000 to pay out.
2. It would' be a high deductible coverage designed primarily to pay for total loss. Maybe something like 20% of the boat's value.
3. The most common claim would probably be lightening damage, which often amounts to $50,000 or more. Our plan might pay for half of a major claim like that?
4. Boat's would have to be out of the hurricane zones during the season. Any other restrictions?
5. Yearly Assessments could replenish what was paid out Or we could continue to pay in until the principle was self-sustaining. That would require investing the funds and a whole added layer of complexity.
6. A rotating Board of unpaid members would oversee the plan (maybe a LLC?), and an administrator would be hired to do the paperwork.
7. Owners would purchase their own liability insurance.
This is all just a very rough framework that can be built on, scrapped and something else adopted, or what ever seems appropriate. Any and all thoughts and suggestions are encouraged. I'm hoping we might have an owner or two that have some insurance or legal expertise to help us understand the potential pitfalls and options available.
Thanks for your ideas.
S M 243