Types of Marine Surveys: Learn the Difference
Most every boat owner will require a marine survey at some point. A marine survey can be conducted for any number of reasons, however, the four most common types are the condition and value survey (often referred to as a pre-purchase condition and value survey if conducted while a vessel is being bought), the insurance survey, the appraisal inspection and the damage survey. Here’s a rundown of the basic types of marine surveys, along with what to expect for each when the surveyor comes knocking.
Condition and Value Survey
The most comprehensive assessment a vessel will likely receive, a condition and value survey (C&V for short) provides clients with an informed, professional opinion of a boat’s condition and fair market value. It includes an in-depth, visual inspection of structural integrity, safety equipment and all other miscellaneous on board systems (electrical, propulsion, sanitation, potable water, navigation, etc) as well as an out-of-water hull inspection and test run or sea trial.
The written report of a C&V survey provides detailed information on the vessel and contains a list of noted discrepancies or variations from the American Boat and Yacht Council (ABYC) and National Fire Prevention Association (NFPA) standards, as well as deviations from United States Coast Guard requirements and prudent seamanship. The report will also contain a “Recommendations” section listing safety, maintenance and repair items that need to be addressed.
Insurance Survey
An insurance survey is conducted to assist underwriters in determining a vessel’s condition and insurability for initial policy issuance or renewal. The primary focus of an insurance survey is structural integrity, safety, and inspection of system installations per NFPA and ABYC guidelines. Safety gear is inspected and noted for compliance with federal requirements, while pertinent identification information is recorded for future reference, valuation and claims adjustment.
The content of a typical insurance survey’s written report is similar to that of a C&V survey, providing detailed vessel information, discrepancies, and recommendations. In many cases, an insurance survey (depending on the surveyor) is similar in scope to a condition and value survey. The biggest difference is that in some cases (typically policy renewal for an established client) underwriters will accept an “in water” survey.
Some surveyors see failure to haul and fully inspect the hull and equipment below the waterline as a liability to them and the best interest of the client and as such may decline to conduct a survey (insurance or otherwise) where the vessel is not hauled for inspection.
Appraisal Inspection
The Appraisal Inspection is conducted to determine the fair market value of a vessel for financing, estate settlements, donations, and legal cases (such as divorce). As the focus is to simply provide the surveyor’s overall impression of the vessel’s condition, an appraisal inspection is a less in-depth inspection as compared to a C&V. The written report will contain basic vessel information, general comments on overall condition and an estimated fair market value.
Damage Survey
The purpose of a Damage Survey is to assess the extent of damage to a vessel in the event of an accident. Other items typically included are recommended repairs, estimated repair cost and determining probable cause. Boat owners should remember that when filing a damage claim the surveyor assigned by the underwriter will be representing the insurance company's interest, which may or may not coincide with their own. Owners have the right to hire their own surveyor to inspect damage and make recommendations as to repair methods and cost estimates. Additionally (depending on the policy) underwriters may even pay for this independent surveyor, subject to deductibles and the validity of the claim.
Although we’ve listed the four basic types of surveys and defined the general scope and purpose of each, there is some blurring of the lines separating them. For example, a condition and value survey (due to its depth and scope of inspection) can serve double or even triple duty, providing prospective buyers an assessment of a vessel, while at the same time satisfying financing and insurance requirements once the vessel is purchased.
Finding a Marine Surveyor
As marine surveying is neither regulated nor licensed by any governmental agency, it’s important to research potential surveyors to determine who can best serve your needs. Reputation, word-of-mouth recommendations, and viewing sample survey reports are all part of the selection process. Membership organizations such as the Society of Accredited Marine Surveyors (SAMS) www.marinesurvey.org and National Association of Marine Surveyors (NAMS) www.namsglobal.org are also good places to start your search.
How Much Will It Cost?
Survey prices vary, depending on the survey requested, type of vessel, hull material, age, complexity of the systems, and specific requirements for the survey. Surveys can be charged by the job, by the hour, or on a per-foot basis, the cost of which can vary greatly from one region to the next. Shop around to get a feel for the going rate in your area, but don’t base your decision solely on the lowest cost. Final selection should include a review of the surveyor’s experience, references, sample surveys, etc.
How Long Does it Take?
The length of a survey depends on a number of factors, from the type of survey required to how well the vessel is prepped prior to survey. An appraisal survey for a typical 40-foot production yacht may last only a few hours, while a condition and value survey for the same vessel (including haul-out and sea trial) could easily take a full day.
By Capt. Frank Lanier
Captain Frank Lanier is a SAMS® Accredited Marine Surveyor with over 40 years of experience in the marine and diving industry. He’s also an author, public speaker, and multiple award-winning journalist with articles on seamanship, marine electronics, vessel maintenance and consumer reports. He can be reached via his website at www.captfklanier.com