An Ill Wind Blows through South Florida
Powerboat Magazine
by Marilyn DeMartini February, 2006
When Hurricane Wilma ended the 2005 Hurricane Season, she almost ended the annual Florida boating Trifecta—the Ft. Lauderdale Boat Show, Key West Offshore World Championship races and the Florida Powerboat Club Poker Run. The huge, slow-moving and powerful storm tore up four counties from the Florida Keys to Palm Beach, leaving a tangled mess in her wake, but tenacity, money, and even the quest for fun, lifted the boating community above the piles of debris.
There was too much to lose—like hundreds of millions in revenues to the City of Ft. Lauderdale from the world's largest in-water boat show. Neither Kay Pearson of Yachting Promotions, operator of the Marine Management Association of South Florida show, nor Ft Lauderdale's mayor, were ready to wave a white flag, despite being seen as politically incorrect amid the devastation. Under the mantra that it was for the industry, the people and the city, Pearson expertly and against the odds, created a generator-run oasis in the middle of mass havoc.
Damage actually boosted the market, as many boaters were out to buy replacement parts—or boats. Several area marinas sustained considerable damage, most notably the elegant Marina One in Deerfield Beach whose owners declined to comment on the damaged building and boats. While Wilma knocked down the former Sunny Isles, now Apache Marina in Miami, slated for condo development by the new owners, they hadn't planned on including the hundreds of stored boats in the demolition plans. A salvage team of four companies tackled a six-week project to clean up the boat yard that Wilma smashed into Bedrock rubble.
"If there is any lesson to be learned, it is that there are too many uninsured boats" stated David "Sully" Sutherlin of U.S. Auctions, one of the salvage partners. "These people are now looking for someone to blame for their irresponsibility," he added, "They know the boat is not insured going into the contract—they store at their own risk."
The salvage teams hoisted the torn building with cranes and undertook the dangerous and labor intensive task of extracting boats from the carnage. Surprised by the reportedly surly attitudes of many of the boaters who were incensed at the salvage charges being sought, some more that $300/foot, the salvage group was also surprised that insurance companies reportedly capped the covered salvage cost at $210/foot. "Lawyers will have people in court for years—we were just trying to save their boats," Sully commented.
Those insured saw light at the tunnel's end. "The effect was seriously devastating," reported Jerry Brewis whose 2002 35' Cigarette Top Gun Playboy edition was crushed at Marina One. "The good news—no one was hurt, Brewis said, "You have to put it in perspective. You have to move forward!" So he counted his blessings and insurance coverage and will build a new and bigger Cigarette.
Steve Posner who had two Motions destroyed at Apache Marina was likewise undaunted. "It took me one minute to decide to get a new boat," he laughed, I saw the (36') Nortech, I bought it and it's incredible!"
Meanwhile, other boaters had a different concern—accommodations in Key West for the offshore powerboat races and the Miami to Key West Poker Run. Despite the loss of approximately 50% of the hotel rooms from a five foot storm surge, Bill Spottswood, head of the Conch Republic Powerboat Racing Association who oversees the event, reported that the races would go on for the expected 70 boats and fans. Having lost a substantial part of the summer season to evacuations from prior storms, Spottswood and his band of businesses ran at full-throttle to clean up and open up.
Stu Jones of the Florida Powerboat Club juggled hotel rooms and prayed the Conch Republic Restaurant and Bight Marina would be ready to accommodate his 170 registered boats. Jones had some additional post-storm waterway concerns—missing markers, sunken or floating boats and debris. The storm surge destroyed many gas pumps, so fueling the powerboat fleets was a tight squeeze at Marathon, where VP Racing Fuels assisted with a delivery truck.
The 3-day Poker Run was the 13th annual success story and Jones reported losing only 8-10 registered boats, mostly from his Panhandle group, still recovering from Hurricane Katrina. "Not all had damaged boats," he replied, "Many had damaged lives."
The impact of disasters on the national boating industry has historically been "neutral" says Thomas Dammrich, President of the National Marine Manufacturers Association (NMMA). "Boating is so integral to the lifestyle in Florida," he commented, "Once damage is repaired and people return to normalcy, they look to get back on the water again."
While natural disasters may not curb the appetite for boating, "We are going to be paying for these (storms) for a long time," says Bob Luellen of Worldwide Insurance Company, East Lansing, Michigan, who writes many policies for the prime insurers like Markel, ACE and Progressive. Insurance companies re-insure themselves against catastrophic losses and those increased costs will be passed on to the consumers. "The volatility of the business in South Florida will reflect the already high re-insurance rates," reports Luellen who predicts that some companies will no longer insure boats in the market. "Some State or Federal government agencies might have to get involved," he added.
"If companies stop writing insurance, it would be a problem—especially since Florida has the largest annual sales and the third largest number of registered boats in the country," said Dammrich, noting the increased frequency and severity of recent storms. "As the market stabilizes, prices will adjust," he added, "Though disasters create losses, damage and hardship, they also provide opportunity and growth as people rebuild."
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