Marine Insurance Surveys
When taking on new clients, insurance companies will often want to assess the risk involved in insuring a boat whatever its type. To assess the value and condition of a boat, a marine survey is required.
An insurance survey is less comprehensive than a pre-purchase survey. This type of survey is focused on the structure and major parts of the boat. The survey takes into consideration the integrity of the keel, hull, deck, superstructure, and also the domestic/mechanical systems and engine.
The insurance survey will contain the following information:
- A statement declaring the purpose of the survey
- Date and location of the survey
- Status of vessel: out of water or afloat
- Model, build, and year of construction
- Vessel type
- Specifications including principle dimensions
- Identifiers such as registration number, hull number and engine serial numbers
- Machinery parameters such as horsepower, model number, transmissions, turbocharged, etc.
As part of the insurance survey, a valuation is also included. The valuation is based on the type of craft, the condition and popularity of it. Certain types of boats have a recognised value on the market. This is weighed against the age, condition and inventory. This means that sometimes older boats in a less perfect condition are valued higher than boats of a more popular make.
The valuation is based on the skill and research of the surveyor. Therefore a more obscure type of boat may have a lesser sale value than usual. Most insurance companies will require an insurance survey before they offer boat insurance. The importance that an insurance company puts on a survey will differ from company to company. Some may only ask for a hull survey. It is always wise to ask which type of survey your insurance company want.