Marine surveys are conducted on boats or yachts for a variety of reasons, and for various entities or people. Marine surveyors are, by nature of their industry standards, supposed to be impartial and unbiased. Their job is to tell the truth about a boat or yacht, as pleasing or painful as that may be. A marine surveyor’s product is a written report. The survey report should be clear, concise and relay the information needed by the customer(s). Due to the highly technical nature of a marine survey, it may (and will) include terms or jargon that are not familiar to the average boat owner, bank employee or insurance underwriter. You should have a pretty good idea what the overall condition of the vessel is and what needs to be done to make it functional and safe. If you have questions or don’t understand what the surveyor is saying, contact the surveyor and have them explain. That’s their job.
Types of Marine Surveys
- A Prepurchase Survey is conducted when someone is contemplating buying a vessel. It is a very comprehensive “Condition and Valuation” (C&V) survey that often includes operational testing of all systems and equipment, as well as a sea trial. Its primary purpose is to provide the potential buyers with the information that they need to make an informed purchase decision. It may also be used to satisfy insurance company and bank loan requirements.
- A Limited Condition & Valuation marine survey is often done specifically for insurance purposes. Each insurance company has their own set of requirements as to what age/size vessel needs a survey, and what the survey report should include. The information contained in an insurance C&V survey report is not sufficient to make an informed decision regarding the purchase of the vessel.
- Appraisal surveys are used for financing, estate and divorce settlements, and donation of vessels to charities. Professional marine surveyors are recognized by the IRS, courts, banks and insurance companies as boat and yacht appraisers within their area of expertise.
- Damage Surveys may also be performed for insurance companies, vessel owners and other vested entities. This includes determining the nature, cause and extent of damage to a vessel when something goes wrong.
Finding a Surveyor
A marine survey is a useful tool for buyers when negotiating price based on what repairs the boat needs. Additionally insurance and lending companies that need to know the true condition and fair market value of a vessel often require it.
The task in choosing a trusted marine surveyor can be challenging since it is not a regulated or licensed industry and anyone can call him or herself a marine surveyor. To complicate matters, your yacht broker can’t ethically recommend a surveyor to you.
Many insurance companies and banks require that a marine surveyor be a credentialed member of either the National Association of Marine Surveyors (NAMS) or the Society of Accredited Marine Surveyors (SAMS). Be sure to check for requirements prior to hiring a surveyor. NAMS and SAMS are recognized and respected marine surveyor professional associations that hold their members to a strict code of ethics and require continuing education credits to maintain membership.
ABYC Standards are the authoritative reference for evaluating issues of design, construction, maintenance and product performance and only ABYC members have verifiable 24/7 access the standards. Make sure your surveyor is one of them.
What a Good Survey Provides
The survey report should be clear, concise and relay the information needed by the customer(s). Due to the highly technical nature of a marine survey, it may (and will) include terms or jargon that are not familiar to the average boat owner, bank employee or insurance underwriter.
A Condition & Valuation survey report should contain all of the pertinent information about the vessel, including the names of the owners and/or buyers, weather conditions, location, etc. It should:
- Identify unique markings such as the name, hailing port, hull identification number (HIN), and federal or state government registration numbers
- Provide published dimensions of the vessel and describe its construction
- Detail the construction of the vessel and equipment installed to the degree needed or required, depending on the purpose of the survey
- Remark on the condition of the vessel and its systems, both in general and in detail
- Provide recommendations for repairs or corrections needed to make the vessel function properly and safe
- Photographs of the vessel from several angles should be included, as well as of the HIN and registration numbers. Photographs of any notable improvements or deficiencies should be included as well
- Include the vessel’s current fair market value, and possibly its replacement value
Regardless of format, after reading a survey report, and maybe re-reading it a couple of times, you should have a pretty good idea what the overall condition of the vessel is and what needs to be done to make it functional and safe. If you have questions or don’t understand what the surveyor is saying, contact the surveyor and have them explain. That’s their job.