Pre purchase insurance policy?

[OTL]

Hi all,

 

This might seem like quite a strange question but at what point do you apply for insurence after you have purchased a boat?

 

What if, for example, you were to buy a boat, sign all the documents etc and then a tree fell on it and sunk it? Or someone else crashed into it while it was moored at the marina you were buying it from.

 

In other words how can you organise insurance so it is in effect as soon as you have completed your purchase?

 

Thanks

 

 

[TheBiscuits]

I insured mine as soon as I'd paid the deposit and signed the sale agreement.

 

There's always that 14 day cooling off period to cancel the policy in if you don't proceed past survey ... 

 

[Alan de Enfield]

10 minutes ago, OTL said:

Hi all,

 

This might seem like quite a strange question but at what point do you apply for insurence after you have purchased a boat?

 

What if, for example, you were to buy a boat, sign all the documents etc and then a tree fell on it and sunk it? Or someone else crashed into it while it was moored at the marina you were buying it from.

 

In other words how can you organise insurance so it is in effect as soon as you have completed your purchase?

 

Thanks

 

 

 

Standard contract conditions :

Clause 7

1.      Completion

1.1. Completion shall take place within [7] days of Acceptance at a location mutually convenient to the parties and preferably in close proximity to the Vessel.  It shall be a condition precedent to Completion that the Broker is in receipt of the full Purchase Price as detailed in Clause 1 and the properly executed original documentation detailed in Clause 7.2.  Immediately upon completion the Seller will give delivery of the Vessel to the Purchaser and will hand over to the Purchaser the Delivery Documents described in Clause 7.2. The parties shall record the time at which Completion occurs by means of a Protocol of Delivery and Acceptance for the purpose of notifying their respective insurers.

1.2. The following original Documents shall be prepared by the Seller and held by the Broker in advance of Completion and shall be delivered to the Purchaser on Completion;

1.2.1. The Builders Certificate and Bill of Sale and all subsequent Bills of Sale in the Seller’s possession relating to the Vessel;

1.2.2. A properly executed Bill of Sale relevant to the Purchaser in favour of the Purchaser or his nominee;

1.2.3. The Certificate of Registry in respect of the Vessel, if applicable;

1.2.4. Evidence by way of original or true copy documents, which have been certified as a true copy by practising lawyer, regarding the VAT status of the Vessel including Builder’s invoices, evidence of VAT payment and dates of arrival in the European Community;

1.2.5. Evidence of compliance with the Recreational Craft Directive;

1.2.6. An express written declaration by the Seller that at the moment of Completion and delivery to the Purchaser the Vessel is free of all debts, claims and charges of every kind;

1.2.7. Where the Seller is a company, certified true copies of the corporate authorities approving this Agreement and appointing the signatories for the Bill of Sale;

1.2.8. Any delivery order or authority necessary to enable the Purchaser to take immediate possession of the Vessel; and

1.2.9. Where applicable, an undertaking shall be given by the Seller to the Buyer to delete any Registry entry pertaining to the Vessel

 

1.      Risk

Clause 9

1.1. Until Completion and delivery of the Vessel to the Purchaser, including while undergoing survey, the Vessel shall be at the sole risk of the Seller who shall make good any damage (other than damage caused by the Purchaser or his surveyor) sustained before actual delivery to the Purchaser.

1.2. However, if the Vessel becomes an actual or constructive total loss before Completion this Agreement shall terminate and the Deposit shall be immediately returned to the Purchaser without interest but without deduction or charge and the Purchaser shall have no claim against the Seller for damages.  The Purchaser shall, however, remain liable for the cost of any yard work or surveyor’s fees commissioned by him or at his request.  Upon delivery of the Vessel to the Purchaser risk in the Vessel shall pass to the Purchaser. 

2.      Title

Ckause 10

2.1. Title in the Vessel shall pass to the Purchaser upon Completion in accordance with Clause 7.

Edited January 18, 2021 by Alan de Enfield

[matty40s]

Most people dont pay the final balance until survey and survey subsequent works are completed to satisfaction, from then, once you've paid the money, get insured from that same day onwards.

The seller would normally cancel their insurance the moment they get the money in their account.

[David Mack]

After you have viewed the boat and had an offer accepted, then you ring round the insurers for quotes and choose which to accept. Then once a completion date has been agreed, ring the insurer and ask for cover to start on the day of completion (and pay the premium).