Buying a German boat: what happens to the policy

German law handles this differently from most jurisdictions. When a boat changes hands, the existing hull insurance transfers to the buyer by operation of law, while liability cover ends with the sale. You do not need to do anything for hull cover to continue; you do need to act if you want different cover, and you need liability cover of your own.

Both parties have a right to terminate: you as the buyer may cancel, and the insurer may cancel within a month of learning of the sale. In practice the sensible sequence is to tell the insurer promptly, decide whether the inherited policy suits you, and if not, arrange your own cover to start the day the old one ends. That way there is no gap and no double insurance.

If you are buying from abroad, check your eligibility before the sale completes rather than after. Residence in Germany, Austria or Spain, or a German, Austrian or Spanish flag, one of the two. A buyer who does not meet either condition and inherits a German policy will need to arrange cover in their own country before the transfer period runs out.

Worth remembering

A German boat comes with its hull policy but without liability cover. Arrange liability cover of your own before the handover, not after it.

Am I automatically insured when I buy the boat?

For hull cover, yes: under § 95 VVG the existing hull policy transfers to you. Liability cover ends with the sale, so you need your own from the handover. Notify the insurer without delay.

Can I cancel the inherited policy?

Yes. Both you and the insurer have a right of termination following the transfer of ownership.

Should I insure the boat before completion?

Talk to us before completion so cover starts cleanly on the day ownership passes; and so we can confirm eligibility before you commit.

Can I insure with you? Flag and registration Cruising range The premium went up: can I leave? The bank wants an assignment