MARINE SURVEYS
& VALUATIONS

Whether for pre-purchase or insurance renewal, a marine survey is a Condition & Valuation Survey. as the purpose is to establish the boat’s condition and value (appraisal). Below is an explanation of the two primary types of condition & valuation survey.

Pre-Purchase Surveys

At Marine Surveys Canada we specialize in pre-purchase surveys, most often including out of the water (hull bottom and underwater gear), in-water inspection (dockside testing of all onboard systems), and Sea Trial (a test run where the vessel is evaluated while underway).

Pre-purchase surveys are very thorough and are acceptable documents to submit when a survey is requested by an insurer. Expensive repairs are often identified during all three portions of a full pre-purchase survey; in the water, out of the water, and during Sea Trial. Pre-purchase surveys include a valuation, or appraisal, of the vessel’s fair market value. The value may not reflect extreme fluctuations in value caused by unusual market conditions.

Insurance Surveys

Insurance surveys are typically completed out of the water when an insurer requests a survey for a new insurance policy, or for renewal of an existing policy. An insurance survey is a basic survey designed to establish the soundness of a vessel, condition of onboard systems and equipment, and suitability for intended use, so that an insurer can determine if issuance of an insurance policy is an acceptable risk. An insurance survey is not a guarantee of insurability, as the final decision will ultimately rest with the underwriter. Insurance surveys include a valuation, or appraisal, of the vessel’s fair market value. The value may not reflect extreme fluctuations in value caused by unusual market conditions.

Insurance surveys may be partially completed in the water, however, this is generally an interim measure for mid-season renewals (to avoid the cost of a mid-season haul out), and a bottom survey is typically required after fall haul-out. This approach may satisfy the insurer in some situations. Vessel owners should verify with the insurer as to which approach is acceptable.