If the ownership of an insured vessel changes involuntarily, within how many days of the ownership transfer will the hull policy terminate?

When ownership of an insured vessel changes involuntarily, such as through events like theft or legal action, the hull insurance policy typically has a specific termination timeframe to protect both the insurer and the insured. In North Carolina, hull policies generally include a clause that states the policy will terminate 15 days after the involuntary transfer of ownership. This provision exists to ensure that the insurance company is aware of who is ultimately insured under the policy, as the risks may change significantly with a new owner.

This allows a reasonable period for the original owner to inform the insurance company about the change in ownership, ensuring that the insurance coverage remains relevant and appropriately assigned. If the original owner does not notify the insurer of the transfer within this 15-day window, the policy will terminate, thus removing coverage for the new owner unless they obtain their own insurance policy.