If you buy a boat with no power and plan to put power in it, how does the insurance and financing work?

I assume the insurance is fairly simple: you insure the hull when you buy it, then adjust your insrance to cover the hull and engines when the project is complete.

My question is more for the financing. If you buy a $XX,XXX Hull and put $XX,XXX worth of engines in it, how does the financing work in order to get the amount the boat will actually be worth in the future when the project is complete?

Or do you finance the hull, then need the cash to buy the engines? Thanks, DK

A bank will not finance just a hull. They want to only finance a complete boat.

You can make an arrangement where you are buing a hull, get a written estimate for the engines to be purchased and installed. Then, when the engines are installed the bank will fund the loan.

The insurance will be your easy part on this one. You can get a "Storage & Transit" policy. Once you install your engines, you will need to update your policy.

I was gonna do the same thing. My insurance told me that once i got an engine for the boat it had to have a serial number on it, like a mercruiser product. If it was custom built it had to have paperwork from the engine shop stating horsepower and specs.

That's correct.

That's easy. Just get a pole, and a white sheet. Now it's a sailboat, complete.

Michael