Selling boat, insurance issues, advice greatfuly appreciated.

[Chamelion]

Hi there,

A gentleman interstate has the intention of purchasing my boat. The company that will be transporting it does not normally move cars/bikes/boats and he's stated that they're unable to offer him insurance to cover the boat in transit. (From memory he works next door to their Mt Gambier depot and deals with them via his work, so they're making an exception.)

I should note at this point that I have his name, phone number and email. I have matched his name and phone number via white pages and as such I have also matched up the location of his home residence. We have spoken on the phone and I am confident that he's a genuine buyer and a straight shooter.

The potential buyer has asked that I leave my insurance on the boat until such time as he receives it in SA and has stated that should a claim arrise he would cover the excess ($100).

My concern is that once he has paid for the boat and I issue him with a receipt he then owns it. Wouldn't my insurance be null and void at this point? I would call to check, but they're closed until Monday. Seriously, club marine not open on a weekend when most boats are used? Odd.

If he purchases his own insurance are they likely to cover someone else (me) towing the boat between my house and the freight company's depot in Brisbane? (125km by the most direct route)... By the same token, is he going to be able to purchase insurance on a boat that is not in his name? I assume the bill of sale would be enough?

Assuming he has his own insurance I will place a clause in the contract that states that he authorises us to tow the boat behind our vehicle for the purpose of delivering it to the freight company and that the responsibility of having adequate insurance is his. (and as such the responsibility of dealing with any damage that may occur as a result).

Bit of a mind bender this one... Advice greatfuly appreciated.

Matt.

Any advice appreciated.

[FishHunter]

take his money and get the disclaimer about towing it just to cover your butt.. The insurance or lack thereof is his concern not yours

[Steeler]

Tell him to get a cover note , not your problem he lives so far away.

[Kero]

Matt,
It's his problem, not yours. He can get a cover note from his own insurance company, or he can transport the thing at his own risk.

[Jarrah Jack]

Matt Glad to see that you've sold it and can move on. Didn't take long either. It would be good to learn how your preperations went towards selling the boat so quickly. Be a guide to anyone else selling perhaps?

Agree with what others have said, its all the buyers problem..

[Chamelion]

Thanks lads, that's what I figured. He should be able to essentially get the insurance for free provided he a) doesn't need to make a claim and b) cancels the insurance within the grace period.

[cormorant]

Get him to insure it, I can't think of a reason why he couldn't but that is up to him.. I always leave my insurance on for a while after selling cars and boats just in case a claim pops up or for some reason the change of title doesn't happen. Speak with your insurer and make a record of it if you are in any way considering doing what he asks.

Alarm bells ring with guys who don't usually transport boats- not sure what size yours is. Boats must be strapped down well and covered or shrink wrapped. many a windscceen or boat full of water has happened along with trailer bent with them being dogged down too tight. Stone chips , tar , and diesel soot everywhere and no security at stops so they get pilfered covers come off life jackets blow out . Most will require the fuel tanks to be totally empty as well.

Then again it may be going in a curtain side trailer with a smart loadmaster using propper wheel tiedowns and and and and ..... I've seen a bloke forka boat on and damage it .

Make your responsibility ends at the transport depot, it is in writing and the bloke understand that alog with having all the papework and $ sorted before you take it there .

[Chamelion]

Cheers :)

One of the points in the contract which should address the issue of damage in transit.


g) The buyer authorises the sellers to tow the boat behind their vehicle post purchase, for the purpose of delivering it to the freight company. The buyer understands that any damage incurred in the delivery of the boat to the aforementioned freight company or in transit via the freight company between Brisbane and Mount Gambier is his responsibility and the onus is on him to purchase adequate insurance.

[oldie]

depends on your insurer i'd stay away from it and tell him tom sort his own. Thing is your insurance i bet only covers boat if hooked to your car and towed on trailer it is sitting on, once that trailer is loaded on a truck essentially you will not be covered as it is being transported.

[4x4frog]

Matt, I am going along with everyone else mate.
He is buying or will have purchased the boat, insurance is his problem.
I very much doubt any insurance would cover the boat for any incident unless you were accompanying it. Even then the ownership issue would be at the forefront.

[Chamelion]

I've stated in the contract as per above, that the onus of having insurance during shipping is on him... Will call my insurer monday to find out about how it'll be covered for the trip from here to the depot 125km away.

It's the only way...

Cheers :)

Matt.

[TheRealAndy]

Tell him to ring club marine and get transit insurance. most policies wont include it anyway, so even if you do keep your insurance chances are it wont cover the boat whilst its being transported.

Eitherway, its not your problem. When I bought my last boat, the minute I paid the final amount was the minute I also needed insurance cover. I had it transported from South Australia to Queensland and I organised for it to be covered by Club Marine while underway.

[fisho64]

depends on your insurer i'd stay away from it and tell him tom sort his own. Thing is your insurance i bet only covers boat if hooked to your car and towed on trailer it is sitting on, once that trailer is loaded on a truck essentially you will not be covered as it is being transported.

Not sure about all companies but when I was looking for insurance for mine - CM, Nauti and another I cant remember had standard clauses of cover for transport by "road rail or sea".

Remember though Chamelion, a clause such as you've got requiring him to have his own cover while yiou tow it to truckies, means HE is covered and if there is an accident and you are at fault his INSURANCE company would be looking at you for money, not him.
Maybe your car insurance would protect you though from such a claim?

cut and pasted from Nautilus


Transit Damage
We will cover you for loss or damage sustained in an accident which occurs while your boat is being transported on its own trailer by road, rail or ship.
not covered
Loss or damage if:
• your boat is not designed to be normally transported on a boat trailer;
• you have not complied with all statutory requirements.

[Chamelion]

Yes, that's a concern, however I could argue that "adequate" insurance should mean insurance that will cover my towing of it also, as the contract clearly states that he authorises me to tow it and any damage incurred is his responsibility.

However, I plan to call my insurer on monday to see if it would be covered from my end until such time as I hand it over.

[Scott nthQld]

That'd be the best way to do it, ensure your insurance covers you until you get it to the depot, then insurance is his problem. While you still have the boat in your possession, treat the boat as your own, just like a vendor you buy something off, until the purchased goods are handed over to you or your agent, the goods are still theirs, even though you might have already paid for it

Biggest issue I would have is if you keep your insurance during transit and a claim is made during that time, he might pay the excess, but it will affect YOUR insurance record and you will have to pay more in the future.

[fisho64]

yeah I reckon Scott is right.
The principal is really that if he has his insurance over the boat the contract is only between him and his company.
Nothing he can do can sign that company to "protect" another party as that is the contract. That is specifically outlayed in any Insurance doco, pretty close to the beginning.
Always going to be a sticky situation-as Scott said take all care etc and "should" be ok!

[Chamelion]

Have just spoken to my insurance company... They said that my insurance will still cover the boat until such time as I sign it over to the freight company, but no further.

So I'll leave the insurance on the boat until I have it over and then I'll promptly call my insurer to cancel my policy.

I've put a lot of effort into this sale, if it doesn't proceed beyond this point I'm going to cry haha.

Cheers :)

Matt.

[Beast1965]

The onus of the liability is on the owner. Once you have received full payment for the item and you have supplied the change of ownership documents to the intended buyer then the responsibility is no longer yours to bear. I would keep the boat covered till you have delivered the boat to the shipping company and have handed over the documents for change of ownership. It would then be the responsibility of the new owner for all costs including insurances.

[Chamelion]

The onus of the liability is on the owner. Once you have received full payment for the item and you have supplied the change of ownership documents to the intended buyer then the responsibility is no longer yours to bear. I would keep the boat covered till you have delivered the boat to the shipping company and have handed over the documents for change of ownership. It would then be the responsibility of the new owner for all costs including insurances.

Fortunately my insurer stated that until such time as I hand the boat over to the buyer or an agent on their behalf the boat is still treated as mine. :) My mind is at ease, I feel better knowing I can tow it into Brisbane and be covered in the unlikely event I cause an accident that results in damage to the boat.