If the insurance pays off the boat, declares it a loss, and lets the owner buy it back, it will probably be uninsureable as he will only get a salvage title. Hard to know how much they will pay as a simple claim.
Ted
Where does this stuff come from?
There is no such status on a federal document. And federally documented vessels have no other title.
There is no such status in Florida. There is a very limited designation for hull damage, which has nothing to do with the cost of repair, just hull integrity:
“Hull damaged” means compromised with respect to the integrity of a vessel’s hull by a collision, allision, lightning strike, fire, explosion, running aground, or similar occurrence, or the sinking of a vessel in a manner that creates a significant risk to the integrity of the vessel’s hull."
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Statutes & Constitution :View Statutes : Online Sunshine
My boat took on water at the slip 2 owners ago. The boat next to me nearly sunk at the slip -- twice. The boat across from me suffered a major fire. All were bought by insurance and resold (onnone case back to the original owner). None have any type of branded title or document. None of any trouble with insurance.
If you look at the abstract of title you can see a prior owner was an auction company or an insurance company, which gives a hint as to the history, but none of them have been branded or limited, and continue to be insured. Just surveys were required.
The range of time is from 2014 (my boat) to 2023 (the boat next to me).
I don't know NY law, if the vessel is state titled there. Or what other jurisdiction might be involved if somewhere else.
But, I wouldn't bet on there being any problem until I checked with wherever it is state titled, if state titled.
I've just never actually heard of this being a problem.
But I sure do see a bunch of people on the Internet suggesting it could be. And maybe it could be somewhere.
But given the hurricanes and storms in Florida....a huge part of the fleet would likely be branded. That isn't the case.