I am in the final stages of a boat purchase, currently waiting for the report from the survey to send to the bank and the insurer. I have a slip on deposit in my home port and the delivery captain on standby for the 3rd of September.The previous owners insurance will end on August 31. The boat is in the Florida panhandle and the slip is not "storm secure", the timing for the closing is falling right in the window for the next storm to enter the gulf on the 29th. This is the right boat. The wife and I have been looking for this boat for 2 years and right now we don't know what to do. The last thing I want to happen is to assume responsability for the boat, insure it if it is still possible, and loose the boat before it can be secured in a better location. Cooler heads prevail. Opinions are greatly appreciated.
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Needs a Time Out
You certainly have a legitimate concern. It's hard to imagine an insurer binding coverage under those conditions. No insurance, no financing and no slip. In other words, hard to see how the deal closes anyway. How about everyone getting their heads together and delaying the close for five days? Rick D.
You certainly have a legitimate concern. It's hard to imagine an insurer binding coverage under those conditions. No insurance, no financing and no slip. In other words, hard to see how the deal closes anyway. How about everyone getting their heads together and delaying the close for five days? Rick D.
Just delay the closing to Sept 2
What's wrong with that? Unless I'm missing something here, that's all you need to do to abate your concern. Explain that you want to settle and get your boat out of there w/in a day or two. Have everything ready, ins, loan, etc., and close 9/2, boat leaves 9/3. If there's a storm a brewing, you can simply not close on 9/2 because obviously the captain isn't going to leave with the boat. So, you set a new date after that impending storm. If slip rental is the issue, pay a couple days' transient fee for 9/1 and 9/1. Better yet, close on 8/31. I think you will know whether a storm is going to impact things in the following 3 days. If the seller wants to sell the boat (which they apparently do) they will wait until then - no matter what they say. As for their insurance ending Aug 31, the seller shouldn't cancel their policy until the deal is done, completely. So they don't have to take any preceeding action. Ins is prorated anyway.
What's wrong with that? Unless I'm missing something here, that's all you need to do to abate your concern. Explain that you want to settle and get your boat out of there w/in a day or two. Have everything ready, ins, loan, etc., and close 9/2, boat leaves 9/3. If there's a storm a brewing, you can simply not close on 9/2 because obviously the captain isn't going to leave with the boat. So, you set a new date after that impending storm. If slip rental is the issue, pay a couple days' transient fee for 9/1 and 9/1. Better yet, close on 8/31. I think you will know whether a storm is going to impact things in the following 3 days. If the seller wants to sell the boat (which they apparently do) they will wait until then - no matter what they say. As for their insurance ending Aug 31, the seller shouldn't cancel their policy until the deal is done, completely. So they don't have to take any preceeding action. Ins is prorated anyway.
Tom, offer to pay the cost
of moving the boat somewhere "safe", pending closing of the sale. To get the seller to agree, your offer will proably need to be non-refundable, to avoid the chance that there is a hitch in the survey and you don't buy. Just say, here is $200 or whatever, move your boat to a transient slip at such and such marina for the next 7 days.
of moving the boat somewhere "safe", pending closing of the sale. To get the seller to agree, your offer will proably need to be non-refundable, to avoid the chance that there is a hitch in the survey and you don't buy. Just say, here is $200 or whatever, move your boat to a transient slip at such and such marina for the next 7 days.
Thanks
Thanks to all for the advice, I found out that currently it the carrier's discretion as to when a boat cannot be insured. Long ago there was a specific distance from where the boat actually was in relation to the storms location. Nowdays with the recent losses in Florida and the mid gulf states a storm does not even have to be near the gulf for insurance to be denied. My agent told me he knew of one carrier that refused coverage when a storm was still south of Hispanola. Fair Winds
Thanks to all for the advice, I found out that currently it the carrier's discretion as to when a boat cannot be insured. Long ago there was a specific distance from where the boat actually was in relation to the storms location. Nowdays with the recent losses in Florida and the mid gulf states a storm does not even have to be near the gulf for insurance to be denied. My agent told me he knew of one carrier that refused coverage when a storm was still south of Hispanola. Fair Winds
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