Last
Friday I declared that we "apparently just purchased" Windbird, but
that's not quite true. We had a signed conditional acceptance agreement with
the owners and they delivered a signed bill of sale, but we still had a few
boxes to tick before closing. We are financing a portion of the boat with our
credit union (with interest rates a ridiculously low 2.46%, it makes sense to
conserve cash for the refit), and before they'll cut a check they have a few
things they need. Specifically: the survey, a conditional acceptance agreement,
an insurance policy naming them as lienholders, and everything needed for
transferring the USCG vessel documentation.
I
had already shopped for insurance during the last month. I got multiple quotes through
IMIS, Bluewater Insurance, and a small private agent, and was surprised to see
that rates and conditions varied quite widely. The most expensive policy, at
$5500/year, also had a ridiculously high deductible. The one we selected, with
Lloyds of London via Bluewater Insurance, came to $2200/year and has a $2400
deductible (10% for named tropical storms). This is an agreed-value policy and
I was hoping to insure Windbird for $120k - her expected post-refit value - but
they would only insure her for $85k for now. I'm hoping we'll be able to bump
it up later based on refit receipts; if not, we may need to do another survey.
The navigation limits are also somewhat restrictive, US coastal waters up to
150nm offshore plus the Bahamas. Our agent at Bluewater says we’ll be able to
expand the navigation limits to include the Caribbean later on for around
$700/year extra, but it doesn’t make sense to do so until we actually need it.
We purchased our policy a few days ago but when the certificate came it didn’t
have the endorsement naming our credit union as a lienholder. I just got the corrected one today.
We
decided a while ago to document our vessel with the Coast Guard rather than
register it with a state, as this simplifies checking into foreign ports.
Windbird is already USCG documented which considerably simplifies the process;
I was going to do the paperwork myself, but our credit union requires the use
of Gloria Rector Vessel Documentation, which charges a hefty $500 for the
service. One of the first steps was obtaining an abstract of title, which
revealed that there was still a lien on the boat from the owners’ previous
loan. They’ve paid off the loan, but the Satisfaction of Mortgage has not yet
been registered with the USCG. Correcting that will involve getting a payoff
confirmation letter from the owners’ previous lender as well as a signature
from a bank officer, which may take a week or two. So closing is on hold until
this is taken care of.
Our
conditional acceptance agreement included nine survey deficiencies we asked the
owners to correct before closing. Work on these has been ongoing and is
expected to be completed soon. In the meantime, I’m currently spending a week at the
boat moving aboard, cleaning, inventorying, organizing, and starting in on my long list of boat projects. I was hoping to get
off the dock for a night or two but that won’t be happening since we don’t own
the boat, and I’m mostly doing putzy stuff that doesn’t involve a
lot of money in parts or materials until the official closing. That still leaves plenty
of work to fill our first days as (almost) boat owners.