USCG Documentation & U.S. Citizenship & Insurance - SailNet Community
Reply
 
LinkBack Thread Tools
post #1 of 11 Old 05-12-2010 Thread Starter
Philippe
 
Join Date: Jun 2009
Location: Los Angeles, CA
Posts: 23
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Red face USCG Documentation & U.S. Citizenship & Insurance

Hi All,

I have a strange question, but bear with me a moment.

My girlfriend and I are planning to buy a sailboat jointly. Because we are going cruising in international waters, we want the boat USCG documented.

However, I am not a U.S. citizen, but she is. According to the USCG, a U.S. citizen needs to be the sole owner (on the title) of the vessel in order for a vessel to be USCG documented.

So, basically I am going to hand over the money to her, and she will be buying and documentating the boat. I'll welcome ideas if there is another way around for us to jointly own the boat still.

Now, here is my question: To get insurance, I have a lot more experience than she does (for now), but can an owner designate a skipper for the boat to apply for insurance, or does an owner have to apply him/herself?

Thanks for any input to this situation

Cheers
Philippe
phboujon is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 11 Old 05-12-2010
ASA and PSIA Instructor
 
Join Date: Apr 2000
Posts: 3,591
Thanks: 7
Thanked 25 Times in 25 Posts
Rep Power: 16
 
I'd call BoatUS and ask them how this can be worked out, they are pretty easy to work with.

See:
Welcome to BoatU.S. Marine Insurance. Please complete the following application for an online quote. In most cases, you will be able to bind coverage immediately. An asterisk (*) denotes required information.

Please call 1-800-804-2628 if:

You have more than four operators
You have special requirements or situations


Certified...in several regards...
sailingfool is offline  
Quote Quick Reply Share with Facebook
post #3 of 11 Old 05-12-2010
Senior Member
 
Join Date: Dec 2003
Posts: 1,480
Thanks: 1
Thanked 26 Times in 25 Posts
Rep Power: 12
 
I believe that for most insurance companies if your GF meets minimal requirements (like a safety course) the rates would not necessarily be higher for her then you.

"Just call me TB"
capttb is online now  
Quote Quick Reply Share with Facebook
post #4 of 11 Old 05-12-2010 Thread Starter
Philippe
 
Join Date: Jun 2009
Location: Los Angeles, CA
Posts: 23
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Quick question, what kind of safety courses?

I only spoke to an agent at IMIS who asked whether we had USCG license... which obviously we don't. I was surpised they asked only that, so I am looking around at other insurance.

Thanks
Philippe
phboujon is offline  
Quote Quick Reply Share with Facebook
post #5 of 11 Old 05-12-2010
Senior Member
 
remetau's Avatar
 
Join Date: Jan 2009
Location: Bradenton, FL
Posts: 780
Thanks: 0
Thanked 8 Times in 8 Posts
Rep Power: 7
 
I think your insurance rates are going to be based more on boat age, type, survey condition, and location.

Don & Diana
sv Re Metau an HC33t

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
remetau is offline  
Quote Quick Reply Share with Facebook
post #6 of 11 Old 05-12-2010
Cabin boy
 
Join Date: Aug 2006
Posts: 140
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 10
 
You can form a corporation and both be shareholders. Google Delaware Corporation for more info than you want.

Never listen to someone describe why your project will not work unless they can show you the broken pieces of their own version. - Robert Gainer
JimHawkins is offline  
Quote Quick Reply Share with Facebook
post #7 of 11 Old 05-13-2010
Senior Member
 
Join Date: Dec 2003
Posts: 1,480
Thanks: 1
Thanked 26 Times in 25 Posts
Rep Power: 12
 
For recreational vessels rates are primarily based on location and the boat, most states offer a safety course as does Coast Guard Aux for which insurers will discount your rate (10%?). ASA and US sailing certifications also usually qualify for the reduction, I don't believe any higher qualifications will reduce rates for insuring a recreational vessel.

"Just call me TB"
capttb is online now  
Quote Quick Reply Share with Facebook
post #8 of 11 Old 05-16-2010
Reward for lost Kraken!
 
hellosailor's Avatar
 
Join Date: Apr 2006
Posts: 11,562
Thanks: 6
Thanked 137 Times in 134 Posts
Rep Power: 11
   
Phillipe, the other terribly obvious solution is for you and the gf to form a limited liability corporation or similar business entity, in which she holds 51% of the stock.

Last time I checked, the USCG would accept the vessel for documentation as long as a US citizen was at least the 51% (ismple majority) owner of the business that owned the vessel.

Now, whether there will be other complications (i.e. insurance) if the vessel is owned by a partnership or corporation, you'd want to check. Especially with regard to insurance rates and such.

And I hope your relationship is stable and long-term, since no matter who puts up the money--she'll now be the sole and legal owner of the boat if you just give her the money and do it that way. She may possibly have to pay income tax on the funds you give her, that's something else to check out, which could take a bite out of the funding. Make sure the fund transfer is properly documented, no matter how it is done.
hellosailor is offline  
Quote Quick Reply Share with Facebook
post #9 of 11 Old 05-16-2010 Thread Starter
Philippe
 
Join Date: Jun 2009
Location: Los Angeles, CA
Posts: 23
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
hellosailor, you bring some points I didnt think of. It would hurt to have to pay income taxt on funds we are basically "saving" together. We have been together for 4 years, and we have a joint bank account.

I am going to look into the corporation idea.

If I was to document with the state of California instead of USCG, how does it impact travelling to other countries with the boat? Would other countries refuse that documentation? I am sure the USCG documentation and the fact to be flying a U.S. flag has advantages, but I wonder how much advantages is that really?

Thanks
Philippe

Last edited by phboujon; 05-16-2010 at 08:27 PM.
phboujon is offline  
Quote Quick Reply Share with Facebook
post #10 of 11 Old 05-16-2010
Senior Member
 
Join Date: Apr 2000
Location: San Pedro, CA
Posts: 274
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 16
 
California doesn't document vessels. They just register boats through the DMV. There is a small fee to register, plus a renewal fee due every other year. There is no requirement for U.S.citizenship. However, if you are traveling internationally, it is easier to get back and forth across the border when a boat is documented.
windward54 is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now



In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.


User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Similar Threads
Thread Thread Starter Forum Replies Last Post
Boat Insurance DonQuijotedelMar General Discussion (sailing related) 1 11-20-2010 01:37 PM
Pleasure boat insurance in Spain DonQuijotedelMar General Discussion (sailing related) 0 07-07-2006 03:56 PM
The Right Insurer and the Best Policy Michael J Smith Buying a Boat Articles 0 06-03-1999 08:00 PM
The Right Insurer and the Best Policy Michael J Smith Cruising Articles 0 06-03-1999 08:00 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome