Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Non-Cattle Specific Topics
Every Thing Else Board
pine trees
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="Jogeephus" data-source="post: 1126701" data-attributes="member: 4362"><p>Sky, I've looked at it pretty hard and can't see where you can come out on top over the insurance company <u>except</u> in the case of a hurricane where you have large valuable trees. The policies I looked at work about the same but there are differences. The gist though is you set a price for the value of the timber and then you pay a premium of about $6 per thousand in value to insure 70% of the value. So say you have a stand of trees that is really worth $3000/acre but because you are a tightwad and want to save money you low ball it for the insurance to save yourself some money and say its worth $2000. So you end up paying $12/acre/year for the insurance coverage on 70% of the value. Say then a fire comes through and wrecks your place and you get someone to come cut the timber. They know its a fire sale so they don't pay you top dollar but they don't screw you too terribly bad and they pay you 60 cents on the dollar. The tract then cuts $1800/acre compared to the $2000 you had it set at. That's a $200 paper loss ($1200 real loss) BUT you only had it insured at 70% value ($1400) so you actually made $400/acre so the insurance doesn't pay you a dime yet you still lost money.</p><p></p><p>Now on the other hand, say you are not a tightwad and you tell them its worth $3000/acre and it still cuts $1800/acre your loss is $1200 but they only insure 70% of the value ($2100) so they end up owing you $300/acre less the deductible - whatever that is. Now here is where things get iffy and subjective. The question could be posed by the insurance company as to why you didn't salvage the timber sooner and for a better price? You will then have to pay to prove your case and this is harder than you might think except in the case of a hurricane but if its because your neighbor set the fire and it got on you it will fall on his insurance policy so they have yet another out. </p><p></p><p>If you think about it, this is about the same reason you will rarely if ever see an insurance company total a brand new car. They have much sharper pencils than we do.</p></blockquote><p></p>
[QUOTE="Jogeephus, post: 1126701, member: 4362"] Sky, I've looked at it pretty hard and can't see where you can come out on top over the insurance company [u]except[/u] in the case of a hurricane where you have large valuable trees. The policies I looked at work about the same but there are differences. The gist though is you set a price for the value of the timber and then you pay a premium of about $6 per thousand in value to insure 70% of the value. So say you have a stand of trees that is really worth $3000/acre but because you are a tightwad and want to save money you low ball it for the insurance to save yourself some money and say its worth $2000. So you end up paying $12/acre/year for the insurance coverage on 70% of the value. Say then a fire comes through and wrecks your place and you get someone to come cut the timber. They know its a fire sale so they don't pay you top dollar but they don't screw you too terribly bad and they pay you 60 cents on the dollar. The tract then cuts $1800/acre compared to the $2000 you had it set at. That's a $200 paper loss ($1200 real loss) BUT you only had it insured at 70% value ($1400) so you actually made $400/acre so the insurance doesn't pay you a dime yet you still lost money. Now on the other hand, say you are not a tightwad and you tell them its worth $3000/acre and it still cuts $1800/acre your loss is $1200 but they only insure 70% of the value ($2100) so they end up owing you $300/acre less the deductible - whatever that is. Now here is where things get iffy and subjective. The question could be posed by the insurance company as to why you didn't salvage the timber sooner and for a better price? You will then have to pay to prove your case and this is harder than you might think except in the case of a hurricane but if its because your neighbor set the fire and it got on you it will fall on his insurance policy so they have yet another out. If you think about it, this is about the same reason you will rarely if ever see an insurance company total a brand new car. They have much sharper pencils than we do. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Non-Cattle Specific Topics
Every Thing Else Board
pine trees
Top