Marine Survey for Insurance
Marine insurance differs from standard insurance categories due to its unique complexities. Marine vessels present various risks to insurers due to their diverse values and exposure to unpredictable marine conditions. Repair costs are also a concern. Hence, insuring marine vessels requires careful consideration.
Marine insurers may request a marine survey before issuing coverage due to the many variables involved. A marine survey is a thorough inspection of a vessel's interior and exterior. It evaluates safety, condition, and value. Insurance companies find surveys valuable to determine a marine vessel's value for policy limits and to uncover any existing issues. The surveyor may suggest necessary repairs.
Whether a survey is required depends on a marine vessel's age, length, and history. Discrepancies in value, past damage incidents, and claims history could prompt a closer look. Survey mandates vary by insurer. Newer marine vessels might avoid surveys, unlike older or multi-owner vessels.
A common survey for insurance is the Condition & Value (C&V) survey. Sea trials might be included. Insurers typically demand surveys by certified third-party professionals, not self-conducted or broker-initiated surveys. A prior survey within a year or two might be accepted for insurance switches, but a new survey might still be needed.
Surveys usually require marine vessels to be lifted from the water to spot hidden issues. Nonessential items should be removed for a clear assessment.
A typical survey checklist includes hull, mechanical systems, electrical systems, rigging, and safety equipment. The survey provides a marine vessel's condition and value but doesn't involve repairs.
Insurance without a survey is possible for newer marine vessels with clear values or liability-only coverage. Prominent insurers might waive surveys, unlike smaller counterparts. Insurance quotes generally don't need surveys.
Survey costs are based on marine vessel size, and are generally determined by the length of the vessel. Factors like age and construction type influence costs. Some surveyors set minimum charges. Elders and multi-hulled marine vessels might incur more fees. Extra inspections like compression tests can add costs.
Personal surveys for insurance are insufficient. Accredited professionals are required to ensure objectivity. Self-surveys aren't accepted due to potential bias.
Surveys are crucial for safety and damage records. They may include visual documentation. Finding certified surveyors can be done through industry organizations' websites.
Marine vessel buyers typically cover survey costs. Negotiating cost-sharing with sellers is possible. Haul-out expenses aren't usually covered by survey costs.