Re: Goat saying NM to pay $1.1 million on Lobato

Having been thru this after the 1985 fire that badly damaged SHAY 7 (#3345),the LAST narrow gauge SHAY that Lima built,it always comes down to how much you can afford to insure, vs any possible recovery in case of total loss.

For example, lets say WE value the SHAY at $5million, and are willing to pay for a policy and premium based on that value. In case of a total loss, in the unlikely case the insurance company would write a check for the full $5m, where do you go to REPLACE this one of a kind item. Yes, there are other 67/70 ton class C SHAYS that might become available, but there is no way to replace the history and uniqueness of the newest/last narrow gauge engine of the type.

So, we 'gamble' on a more reasonable locomotive value and premium we think we can afford vs the probability that it will be lost. And this is only ONE item of a large collection of locomotives [15 at last count], we have to insure, maintain, put a few dollars aside for ongoing repair and maintenance, buildings and other infrastructure. Insurance [liability and property damage] is second only to advertising in our annual budget.

I'm sure the same questions have been addressed by the commission, in deciding how MUCH they can afford to insure, vs the history of Lobato, or any of the equipment and track.

John Harbeck
Hesston Steam Museum in Indiana