UK Boat Rental Insurance Loophole

How to insure a Long Term Rented Narrow boat

The loophole.........................

Say you are taking the boat on for six months. The owner of the boat draws up a contact selling you 4/64ths of the boat, for the sum of (say the total rental cost for six months, or 4/64ths of the insurance valuation of the boat) and you make the down-payment of one month (say) upfront. The contact is dated and signed by both parties to the agreement, in it a date to return the boat is stipulated.

This agreement is signed by both parties and dated

(You can draft something up between you, for legal reasons wording cannot be suggested)

A second contact is drawn up and on it it states that the boat will be returned to the location agreed within 7 days of the date of signing, and the boat then handed back to the owner of the remaining 60/64ths, within the contact it states the the owner of the 4/64ths share of the boat agrees to sell his share back to the owner of the other 60/64ths for the sum of £1.00.

This agreement is signed by both parties AND LEFT UNDATED.

Both forms are sent to the insurance company and the owner confirms he has been paid for the 4/64th share (or one down payment) and the insurance company will note the name of the new 4/64th part owner on the policy and hey presto, the boat is covered. Once this owner has his name on the policy he could, if he wished, ask for additional cover for, say, his own contents....

The normal BWB licence covers this arrangement and the name of the part owner need not be advised to them.

We are only aware of ONE insurance company that covers this arrangement.

The company offering this service is Michael Stimpson and Associates, contact  or 01923 770425 (afternoons).

To protect yourself you should run ANY such contact past a marine solicitor or legal advisor and the owner of this web site whilst offering this information in good faith can not, under any circumstances, be held responsible for any errors and omissions in any of the above. 

Residential narrow boat rental