Condition And Value Surveys Have Value Beyond The Purchase Process

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06-30-2010, 01:23 PM

WakezoneINS

HP Marine Ins. Specialist

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Condition And Value Surveys Have Value Beyond The Purchase Process

Some boat owners tend to get marine surveys only when they have to. Typically, this is when they are purchasing the boat, moving to a new insurance company or taking a loan out on the boat. But these three times are not the only times a marine survey should be done. From an insurance standpoint I would recommend to have a survey done on your boat approximately every 3-5 years. Many of you may ask “Why?” and reference the extra cost involved in a survey.

Here are some of the reasons that I believe boat owners should get condition and value marine surveys more often:

1. There is an exclusion similar to the following in nearly all marine insurance policies that states:

We do not provide coverage under Section A (damage to boat) due to and resulting from; a) wear and tear b) gradual deterioration; c) weathering d)mold, mildew or wet and dry rot or dampness of atmosphere; g) marring, denting, scratching, chipping h)corrosion or rust…. Etc etc… etc..

A marine surveyor does a thorough inspection of your boat and is trained to see things that the average boat owner may not see or know to look for. They are experts in their field and by having a marine survey in your hand that states that your boat does NOT have any of the above could help you come claim time. It may not help every time but at least you will have the information to help your case.

2. If you have an Actual Cash Value policy the marine survey will help to establish a value. It is recommended that this is done every three - five years. In the event of a total loss this survey may help to support a higher payout. By obtaining the marine survey every three years you've established a value and pattern of depreciation.

3. If you have an Actual Cash Value insurance policy then a marine survey could help ensure that you are not overpaying for insurance. The marine survey can help you keep the limit of insurance that you pay for inline with the current value of the boat (i.e. market value). The market value is what you are paid in the event of a total loss. You do not want the limit of insurance on your declarations page to be too far off the current market value on an ACV policy.

These are just a few reasons why I believe it would be good to have a marine survey done every 3-5 years. I’m sure that many of you can contribute many other great reasons to do so.

If you haven’t had a marine survey done on your boat in awhile, I encourage you to do so. Also, it is important that you obtain your survey from an accredited marine surveyor. These surveyors are held to high standards and their surveys, from my experience, far exceed those of non-accredited surveyors. A couple of reputable accreditations for marine surveyors are NAMS or SAMS.

Also remember that if you get a survey you should send a copy to your insurance agent for safe keeping and review.

Last edited by WakezoneINS; 06-30-2010 at 09:26 PM.