Marine Insurance Surveyor

What Types of Surveys Does a Marine Insurance Surveyor Perform?

There are different types of marine surveys, each one conducted for a specific purpose. A survey may be required to obtain boat insurance or financing, to purchase a boat, or when there is damage to a vessel.

The Marine Insurance Survey

Also called a Condition and Value (C&V) survey, this is the most common and most comprehensive inspection that a surveyor will conduct. It is specifically designed to meet the needs of insurance companies and lending institutions, which need to evaluate and assess the financial risk involved in insuring or financing the boat.

As the name suggests, the express purpose of this inspection is to report on the boat's condition and value at the time of the survey. Generally, a C&V survey will only involve a detailed visual inspection of the boat, unless the insurer or lien-holder requires a sea trial or operational testing. It will evaluate the safety and sea-worthiness of your boat, based on the current condition of its systems, structure and equipment. It will also provide an evaluation of the boat's fair market value.

A marine insurance survey will generally be required prior to coverage being provided. A similar survey will also be required every four or five years as a pre-requisite for coverage renewal. In the event of an accident, theft or vandalism, a damage survey will be conducted to evaluate the extent and cost of damage to the vessel.

An insurance survey is typically conducted on your behalf as the boat's owner. As such, you are responsible for commissioning and paying a surveyor to conduct the inspection.

Conducting the Survey

• Your insurance company will notify you that a C&V survey is required by a particular date in order to begin or continue coverage. You will then select and commission a surveyor to conduct the survey on your behalf.
• The surveyor performs a thorough inspection of your boat's hull, topsides, interior and bottom, as well as its electrical systems and machinery installations. This helps determine whether or not the boat is safe and structurally sound, with no obvious flaws that may result in a loss.
• The surveyor will also conduct a static comparison of the boat to other similar vessels of the same class, size, age and intended service. This is used to establish the fair market value of the boat.
• The surveyor then generates a written report, which details the boat's structural integrity, overall condition and cosmetic appearance. The report will also include an analysis of whether or not the boat's safety systems meet all the applicable laws and regulations.
• You will forward the surveyor's report to your insurance company. If any deficiencies are found, your insurance company will notify you to make the necessary repairs, corrections or upgrades before any coverage is issued.

The Damage Insurance Survey

The Marine Insurance Surveyor will typically perform this type of survey on behalf of an insurance company, and at the insurer's own expense. It is conducted so as to estimate the extent and cost of repairs or loss resulting from an accident, vandalism or theft. The surveyor will also recommend the repairs required and may even be commissioned to supervise these repairs. In this case, the surveyor works much like an insurance adjuster.

If there is a dispute between you and the insurance company regarding the claim amount, a surveyor can perform a damage survey on your behalf.

Do you Really Need a Marine Surveyor?

The requirement by insurers and financial institutions for an insurance survey may seem like an inconvenient expense. However, if there are any expensive repairs or problems that are discovered during the survey, the marine surveyor will more than earn his or her bill.

Marine Insurance Surveyor Organizations

• Directory of Marine Surveyors
• National Association of Marine Surveyors (NAMS)
• The Society Of Accredited Marine Surveyors, Inc.
• The International Institute of Marine Surveyors
• American Boat & Yacht Council (ABYC)