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Old 20-05-2013, 14:19   #1
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Please advise (insurance during buying)

Aloha!
Unsuccessfully trying to understand and already broke my mind..
I'm going through buying process and right at this time all pre- is done.
Price is negotiated and boat was finally inspected by me.
The sellers goes to his country and awaiting for transfer from me after which he will promise to pass me all documents - bill of sale, delection cert from previous register, builders cert etc..
The boat is moored in marina which have a contract with the seller till the end of June.
The seller has insurance which also end in June..
So what should I do? and what is the right order?
The money will be transferred during 3 banking days + some delays and the documents package will be passed during next 2 days and will be on the way 3-7 days, I think.
How to protect boat during this window of 14 days?
If she goes after the money will be sent the seller will receive money as well as insurance payments I think and if she will destroyed or damaged in marina before I receive docs too..
So how can I insurance it right after money transfer and before bill of sale receiving? I mean how can I insurance thing that is not formally mine?
Any insurance company ask about marina contract copy and marina do not want to reissue it before BoS seeing (and is formally right).
And the seller are not happy to see me on the boat before transfer receiving I think but even this do not solve the problem..
Thank you for any advises...
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Old 20-05-2013, 14:52   #2
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Re: Please advise (insurance during buying)

At least in the US, but I believe that it is also done in other countries, your marine insurance broker issues you a binder of insurance coverage. This is temporary and only good for 30 days until all paperwork has cleared. The binder will cover you for losses to your boat until all of the paperwork clears and an insurance policy is issued.

It sounds like you do not have a contract. If you do have one the contract should spell out exactly when title should pass. Absent a contract, at least for US law, title passes when money passes. Paperwork can follow, but the boat is yours as soon as the funds have transfered.

David
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Old 20-05-2013, 14:54   #3
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Re: Please advise (insurance during buying)

Alexi,

You have had survey done by professional surveyor? Most insurance companies will want this before providing coverage. Can you meet seller in Croatia or halfway in Lviv or Budapest? Then make transfer of payment and documents in person at bank? This way bank could fax all documents for you to insurance company so your insurance could start at once. Otherwise you will need prior owner to provide your insurance company with all documents so you can start coverage on day of sale and wire transfer. This should be written into contract agreement so you not have to worry about lapse of coverage.
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Old 20-05-2013, 15:19   #4
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Re: Please advise (insurance during buying)

Quote:
Originally Posted by djmarchand View Post
your marine insurance broker issues you a binder of insurance coverage. This is temporary and only good for 30 days until all paperwork has cleared.
David
Thanks!
We have a pre-purchasing in which is the text about that I will receive all documents right after transfer yep.
So I should to go to marina I think and try to find some marina insurance broker even to ask about such possibility.
Problem is that the seller is too busy and as this point was not cleared and discussed in pre- his broker did not make any movements to assist.
About the broker this is separate story.. They disappeared immediately after deposit was receipt


Quote:
Originally Posted by Crimea Cruiser View Post
Alexi,
You have had survey done by professional surveyor? Most insurance companies will want this before providing coverage. Can you meet seller in Croatia or halfway in Lviv or Budapest? Then make transfer of payment and documents in person at bank? This way bank could fax all documents for you to insurance company so your insurance could start at once. Otherwise you will need prior owner to provide your insurance company with all documents so you can start coverage on day of sale and wire transfer. This should be written into contract agreement so you not have to worry about lapse of coverage.
Thanks and nice to hear you!
Yep there was a professional survey I think but I did not have paper report yet, just email variation.
I have just meet him here on board to make a final inspection (he changed mainsail as of our ANNEX) as well as to see the notarized BoS.. This is my first boat purchasing so the question about what to do came right after I think that should to make transfer now..
The seller is back home and I'm still here in Croatia.. Thinking about sitting near it during next two weeks - I have a cool tent and sleeping bag
I can try to pickup docs in seller's home country to reduce some time for their delivery.. but it will be also near 6 days..

I will try to find some local insurance company for temporary insurance.. May be they will accept printed copy of BoS or I don't know..
We've got a topic here about how to buy a boat but have no one about what is needed to be specified before buying.
And sure if there was an adequate broker then there would not be such problems. In my situation broker received his commission and say ciao, the seller do not want to move as it is almost not his boat and not his problems and I'm without any experience in this field trying to do something to prevent mistakes.
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Old 20-05-2013, 15:25   #5
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Re: Please advise (insurance during buying)

Quote:
Originally Posted by Cheshire View Post


I will try to find some local insurance company for temporary insurance.. May be they will accept printed copy of BoS or I don't know..
.
See if owner will provide you with information as to his insurance company. That company would be seamless way to continue coverage.
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Old 20-05-2013, 15:34   #6
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Re: Please advise (insurance during buying)

I asked about this for future. It is not right local but their representative is located in Croatia.
But I think there is some procedure to change beneficiary and this will be done (if ever) only after transfer receiving.
I trade wild during negotiation and its look like all tortured so are not so friendly.

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See if owner will provide you with information as to his insurance company. That company would be seamless way to continue coverage.
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Old 22-05-2013, 11:40   #7
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Re: Please advise (insurance during buying)

No one want to insurance it before registration end..
I contact the seller and he didnt want to contact his insurance company to inform about beneficiary changing.
So is there some more variant beside living onboard till the end of reg?
Regards,
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Old 19-07-2013, 13:05   #8
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Re: Please advise (insurance during buying)

Thanks cruisersforum.
All was fine. The insurance company ALLIANZ with their local representative helps me with this and insured my boat right after I provided the Bill of Sale. There was some troubles later during the renaming and flag changing process (new IMO, new flag, new name) but they make corrections and reissued necessary papers.
Such positive experience.
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Old 19-07-2013, 13:47   #9
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Re: Please advise (insurance during buying)

Glad all went somewhat smoothly for you!!
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