The Insurance Survey: When Your Yacht Needs One and What the Surveyor Looks At
Sooner or later, an underwriter will ask for a survey. It might be when you buy a boat, when you move your cover to a new insurer, or simply because your yacht has reached an age or value where the insurer wants a professional's eyes on her. Knowing what the survey is for — and what the underwriter will do with it — makes the process quicker and cheaper.
What an insurance survey is
The survey underwriters ask for is usually a condition and valuation survey (often called a C&V). A qualified marine surveyor inspects the vessel and reports on two things: her condition, and what she is worth.
It is not the same as a pre-purchase survey. A buyer's survey is typically more thorough — often including a haul-out and a sea trial — because the buyer is deciding whether to spend a great deal of money. An insurance survey is focused on what the underwriter needs to know: is this boat sound, safe and insurable, and is the value we are being asked to insure a fair one? Depending on the insurer, it may be done with the boat afloat or ashore.
When one is usually required
Each insurer sets its own rules, typically based on some combination of:
the age of the vessel,
her value and length,
how she is built, and
whether she has just changed hands or is new to the insurer.
A fresh survey may also be asked for periodically on older boats, or after major damage or repairs. Because the thresholds vary, check the insurer's requirements before you book a surveyor — including any rules about who may carry out the survey.
Choosing a surveyor
Many insurers and lenders require the surveyor to be a credentialed member of the Society of Accredited Marine Surveyors (SAMS) or the National Association of Marine Surveyors (NAMS). Both require members to demonstrate their competence and keep their knowledge current.
Beyond the credential, look for experience with your kind of vessel — a surveyor who knows large motor yachts may not be the best choice for a classic wooden sailboat, and vice versa. And if you are buying, choose a surveyor who works for you, not for the seller.
Surveyors usually price their work by the foot of length. Hauling the boat or a sea trial, if needed, is normally extra.
What the surveyor looks at
Every surveyor works differently, but an insurance survey generally covers:
Hull and deck — structure, signs of damage or previous repair, moisture, blistering or delamination
Below the waterline — through-hulls, seacocks, running gear and bonding, where they can be inspected
Machinery — engines, generators and their installation, signs of leaks, overheating or neglect
Fuel system — tanks, lines, fills and vents
Electrical — shore power, batteries, wiring and protection
Safety equipment — fire extinguishers and suppression, bilge pumps and high-water alarms, carbon monoxide detection, navigation lights and life-saving gear
Value — an opinion of market value, usually drawn from comparable sales
Surveyors commonly judge what they find against recognized standards, such as those of the American Boat & Yacht Council (ABYC) and Coast Guard requirements.
The recommendations matter most
A survey report ends with findings and recommendations, often ranked by how urgent they are. The underwriter will read those closely. Safety-critical items are typically expected to be fixed — sometimes before cover starts, sometimes by a set date — and you may be asked for proof: invoices, photographs, or a note from the surveyor confirming the work.
Leaving an important recommendation open can lead an underwriter to restrict cover or decline to renew. Deal with them promptly, keep the paperwork, and tell your broker when they are done.
Survey and value go together
The valuation in the survey is often what supports the hull value on your policy. If your yacht is insured on an agreed value basis, that figure is what the policy pays after a total loss — so a well-supported value protects you as much as it reassures the underwriter. We explain the difference between agreed value and actual cash value in an earlier Logbook entry.
If an underwriter has asked you for a survey and you are not sure what they need, we are glad to help you find out before you book one.