Insurance & Valuation
Marine Surveys for Insurance & Valuation
To insure a vessel, a survey is essential. All insurance companies will require a standard marine survey for insurance purposes prior to awarding a policy or for renewal of a policy.
Insurance companies will also require a survey to be carried out following an accident or damage to the vessel in order to make a claim. Insurance surveys do not necessarily provide a valuation of the vessels worth unless specifically requested. For this, a Valuation Survey is required, the result of which is a well-informed estimate given by the surveyor and importantly, not a statement of fact. See below for more info on Valuation Surveys and Marine surveys for Insurance purposes.
An Insurance survey is an out of water condition survey for insurance purposes in accordance with the general requirements of insurance companies.
It is a less detailed survey than a pre-purchase (full condition) survey. In some cases the inspection can include a valuation, but this should be arranged prior to the survey. Sometimes the insurance companies have special requirements so they should be contacted before the survey, YSG can do this if required.
Insurance Surveys are performed at the request of insurance companies to determine the overall condition of a yacht. For renewal of existing insurance policies on a periodical basis, depending on the insurer, owners may also commission this type of survey. The survey usually includes an out of water inspection to look at the integrity of the underwater body, hull, keel, and stern gear, and will also cover the structural integrity of the rest of the yacht and general safety of the vessel, looking at areas appropriate to the scope of the survey, not focusing on minor defects. Depending on the type of vessel some insurance companies will want to know the fair market value of the vessel.
The Valuation survey is unlike other surveys because it is the surveyor’s opinion only and not a statement of fact.
The valuation is based on the condition of the yacht at the time of the survey, the surveyor’s opinion of the market and comparisons made with similar yachts.
A marine survey for valuation is often carried out at the same time as the pre-purchase survey. It is performed in order to determine the fair market value of the craft and is normally needed for insurance or other financing purposes. Sometimes a Valuation can be carried out after an appraisal inspection (walk through inspection). This clearly has limitations which will be indicated on the Valuation survey document .
Yacht Survey Group carries out these types of surveys for insurance companies and finance companies/ banks/ lending institutions. These organisations could have specific requirements for the survey so they should be consulted beforehand. YSG can do this if necessary.
After completion of the survey inspection a report will be emailed within ten working days, or sooner if previously arranged. Following your receipt of the report, we are available to discuss/ clarify any issues raised in the survey result.