How much does a "Full Insurance Survey" involve?

[Babylon]

My insurers require that my boat has 10-year survey before next Spring's renewal, i.e. "a full out of water survey and valuation by a member of any of the following bodies..."

Two issues:

1. Boat is currently ashore for a few weeks for this (plus some GRP tidying work by the yard and the sails off for cleaning etc) but the rig is up. Would an insurance survey expect the rig to be down as well?! I don't want to ask directly in case they randomly decide to say "yes". (As it happens the standing-rigging was all replaced three years ago and is anyway completely over-specified and bulletproof by design.)

2. Agreed value: this was £45k after the last survey in 2014 (new engine, fresh-water tanks, electrical system, etc) but I subsequently did considerably more upgrade work (Coppercoat, topsides respray, full interior strip and revarnish, all new upholstery, stack-pack, etc) and it later rose to £55k. Clearly this reflected the cost and value to me, but of course a forced-sale value on the open market would be less than even the lower of the two above figures.

So, let's say the surveyor reckons it is worth only £35k. What (a) do I get to actually insure it at, and (b) whatever this (agreed) figure if the boat is lost completely will the insurers actually pay it?

 

[ylop]

Mast up will be fine.
If they agree to an agreed value policy then that is what they will pay for a total loss. You might be positively surprised what the surveyor says on price. If there is a large disparity between his value and yours the insurer may not be willing to renew with an agreed value - otherwise I could buy an optimist for £500 insure it for £50000 and it could sadly sink, and I will be about £49000 better off!

 

[dankilb]

Yup - mast up fine and otherwise all pretty routine. You are the ‘client’, as far as most reasonable surveyors are concerned, so they’ll probably work with you on something like value. You could always find a couple of broker listings to evidence current market prices, should you need to - but can’t see why you’d be disappointed. Speak to your chosen surveyor about your concerns. You’ll be paying them a fair few hard-earned £££s after all!

 

[dankilb]

What (a) do I get to actually insure it at, and (b) whatever this (agreed) figure if the boat is lost completely will the insurers actually pay it?

Afaik it’s ‘market’ or replacement value. But I do know our insurer will only go a modest % above survey value - in our case it was 20% when I asked for an increase to account for improvements/market forces at last renewal.

 

[Babylon]

Thanks, I'll have a chat with my surveyor.

 

[Tranona]

The insured value is what they contract to pay for a total loss. It may also influence how they will deal with a large claim where the cost of repairs may approach the insured value. so yea, they will pay because that is what the contract says.

The insurance survey is to check the boat is sound, well maintained and in a seaworthy condition . Your 3 year old rig replacement is a plus in showing it is well maintained. On value don't think you will have difficulty. Insurers are well aware of the rise in value of well maintained boats. Indeed the renewal letter this year suggested revisiting values - general advice not specific to me. Like you I increased insured value following major expenditure on refit and they accepted a brokers valuation of £36k knowing my purchase price a year earlier was less than a third of that. support for the value was the original survey, report of work done and a list of new items fitted.

 

[Babylon]

Appreciate that input Tranona. Now had a chat with my surveyor, to whom I've already provided a full schedule of renewals and upgrades over the last 16 years of ownership, and will see what comes up after the actual survey next week.

 

[Aeolus]

Make sure that your surveyor understands that you only want a survey for insurance purposes, not to buy a boat. I had a survey done by a numpty who, for example, recommended that I dismantle the furniture and remove the interior insulation & lining in the forecabin so that he could inspect the inside ends of the bolts that secured the stemhead. A silly recommendation in any case but insurance companies typically accept the risk 'subject to all recommendations being implemented' or words to that effect. I had to argue strongly for the surveyor to change his report to delete the recommendation and instead state 'I was unable to inspect the inside ends of the stemhead bolts'. He also made recommendations about cosmetic issues that I had to insist he delete.

 

[Gixer]

Literally having one done at the moment. I'm on third party insurance ATM but really want better cover to had to bite the bullet.
I'm still out the water so had the underside and hull checked on Tuesday (no defects!!!) and the surveyor will do the rest when I'm in the water in a week or two.

 

[Daverw]

We had the same requirement last year, the report was very positive and surveyor really understood what they needed and also gave me a few pointers for the next few years

 

[Tranona]

Most surveyors clearly state the difference in coverage between an insurance and pre purchase survey. See here boatsurveyor.net/yacht-surveys/ for example picked at random.

 

[Sandy]

I would be asking the insurance company to define what they mean by "a full out of water survey and valuation" and that definition be given to your surveyor with strict instructions that that is what I want done.

 

[Tranona]

I would be asking the insurance company to define what they mean by "a full out of water survey and valuation" and that definition be given to your surveyor with strict instructions that that is what I want done.

Really no need. The survey coverage in the link I gave is pretty standard and is acceptable to insurers to meet that wording. boatsurveyor.net/boat-valuation-insurance-surveyor/ It is essentially a paper exercise as the insurer is relying on the opinion of a recognised professional rather than the owner. There is no reason why you cannot ask the surveyor to do extra. Mine spent the whole day with me helping draw up a schedule of work,

Remember you are the client and the insurer is the audience so make sure s/he meets their requirements.

 

[blush2]

When we had an insurance survey done on Blush it agreed with our expected value. The survey report included a few routine maintenance items which we did.

However, I would suggest that you make sure your surveyor is familiar with your boat type and construction. When we were selling her a prospective purchaser engaged a surveyor who had no experience of balsa core boats and as a result the sale fell through.

 

[Babylon]

Just to update: had the survey done a few weeks ago by a very thorough and well-recommended surveyor who produced a glowing report with just a couple of minor advisories, and who pitched the value pretty much where I was happy at.

 

[Gixer]

I had my first insurance survey done last month also. I was amazed at the detail that was went into, in a good way. Like Babylon I also got a glowing report with minor advisories.
Really good value for money in my view just for piece of mind if nothing else.