Ownership
Insurance steps when buying a used boat
- Agree the purchase subject to a satisfactory survey, with a stated period.
- Commission an independent survey, scoped to serve both purchase and insurance.
- Read the recommendations and use them to renegotiate, rectify or withdraw.
- Quote the market on the survey's valuation and findings, through both direct insurers and a marine broker.
- Establish from the contract exactly when risk passes to you.
- Confirm cover to incept at that moment, in writing, before settling.
- Add the delivery passage as an extension if it falls outside the standard navigation limits.
- Check the certificate for vessel identity, sum insured, limits and inception before you pay.
Used boat documents for insurers
| Document | Why |
|---|---|
| The survey report and valuation | Condition and the basis for the sum insured |
| Purchase price and contract date | Value corroboration and insurable interest |
| Hull identification number and registration | Vessel identity |
| Your experience and claims history | Operator rating |
| Intended berth or storage | Location rating and security conditions |
| The delivery plan, if any | Navigation limits and crew conditions |
| Finance details, if any | Noting the financier's interest |
Purchase price versus insured value
Bargain purchases are common and perfectly insurable — a deceased estate, a distressed sale, a boat needing work. What creates a problem is concealing the price and asking for a much higher sum insured, which is a standard fraud indicator. Say what you paid, say why it was below market, and provide the survey valuation that supports the figure.
Insurance checks before settlement
- Confirm the seller's policy has not already been cancelled, leaving the boat uninsured in the gap.
- Check for a financier's interest registered against the vessel.
- Confirm registration and transfer requirements in the relevant state.
- Get the certificate of insurance in hand, not promised.
- Photograph the boat at handover as your pre-loss baseline.
Condition is what decides marine claims
Almost every declined marine claim is an argument that a failure was gradual rather than sudden. The records you keep are what answers it.
Related guides
- Pre-Purchase Survey vs Insurance Survey
- Marine Surveys and Boat Insurance Australia
- Selling a Boat: Insurance and Cancellation
- Boat Delivery and Repositioning Insurance
- How To/Buying And Selling
- Boat Insurance Sum Insured: Choosing Your Vessel Value
- Sailboat Insurance When Buying: Handover and Cover Dates
- Boat Insurance Underwriting: Surveys, Age and Maintenance
- Insuring a Previously Storm-Damaged Catamaran
- Yacht Purchase Insurance Guides
General information onlyThe information on sailboatinsurance.com.au is general educational information only. It may be wrong, incomplete or out of date, and you should not rely on it as a substitute for the current policy documents or professional advice. It does not take into account your objectives, financial situation or needs and is not personal financial product advice. Insurance cover depends on the actual policy wording, Product Disclosure Statement, certificate of insurance, endorsements, exclusions, limits, sub-limits and underwriting decisions that apply to your vessel. Always read the current policy documents before buying, renewing or changing cover. For legal, financial or insurance advice about your own circumstances, consider speaking with an appropriately licensed professional.