Advise against it. Your cousin is either ignorant regarding the insurance requirement or is pulling the wool over your eyes. If the CG says insurance is required, then I'm not sure how she is getting out of paying it - unless she was grandfathered in under an old rule.
She also bought it without a title and she didn't tell you about that. Most likely wouldn't have told you about the water damage if you had not experienced it.
She wants to get rid of it and has you in her sights.
Take the advice of the above poster and RUN! Lots of used TT's that are not salvaged, have titles are available - look on Craigslist. You already know of a park you like to keep it at.
So to answer your question - NO, I would not buy it.
