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Old 06-30-2010, 02:41 PM
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Condition And Value Surveys Have Value Beyond The Purchase Process

In my experience, boat owners tend to get marine surveys only when they have to. Typically, this is when they are purchasing the boat, moving to a new insurance company or taking a loan out on the boat. But these three times are not the only times a marine survey should be done. From an insurance standpoint I would recommend to have a survey done on your boat approximately every 3-5 years. Many of you may ask “Why?” and reference the extra cost involved in a survey.

Here are some of the reasons that I believe boat owners should get condition and value marine surveys more often:

1. There is an exclusion in your marine insurance policy that states the following:

“We do not provide coverage under Section A (damage to boat) due to and resulting from; a) wear and tear b) gradual deterioration; c) weathering d)mold, mildew or wet and dry rot or dampness of atmosphere; g) marring, denting, scratching, chipping h)corrosion or rust…. Etc etc… etc..
A marine surveyor does a thorough inspection of your boat and is trained to see things that the average boat owner may not see or know to look for. They are experts in their field and by having a marine survey in your hand that states that your boat does NOT have any of the above could help you come claim time. It may not help every time but at least you will have the information to help your case.

2. If you have an Actual Cash Value policy the marine survey helps establish a value every three years which in the event of a total loss could get you more on your pay out because you routinely established a value and a pattern of depreciation with an industry expert.
3. If you have an Actual Cash Value policy the marine survey will help you to not over pay for insurance that you wouldn’t get paid for in the event of a total loss anyways. For example: You are charged X amount of dollars for each $100 in coverage you take out on your boat. Let’s say that you have a limit of damage on your policy for 100,000 ACV. Your marine survey states the boat is only valued at $50,000. In this instance you are paying double the hull premium. You’re paying for $50,000 worth of coverage that you are not going to get paid out for. The marine survey can help you keep your valuation of the boat in line.

These are just a few reasons why I believe it would be good to have a marine survey done every 3-5 years. I’m sure that many of you can contribute many other great reasons to do so.

If you haven’t had a marine survey done on your boat in awhile, I encourage you to do so. Also, it is important that you obtain your survey from an accredited marine surveyor. These surveyors are held to high standards and their surveys, from my experience, far exceed the non-accredited surveyors. A couple of reputable accreditations for surveyors are NAMS or SAMS.

And if you get a survey, don’t forget to send it to your insurance agent so that they can keep it in their systems/records for safe keeping.

Have a safe and enjoyable Fourth of July everyone!
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Old 06-30-2010, 04:59 PM
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Thanks for your expert help and info Stacy!!!

and I love the new avatar
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Old 08-19-2010, 12:40 PM
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If your insurance company requires you to get an updated survey and the value is higher (due to upgrades) than what you have the boat insured for currently, do you need to raise the insured value on the policy or can you leave it the same?

Obviously it's best to insure the boat for what it's worth but just curious what you can/can't do?
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Old 09-09-2010, 08:40 PM
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Quote:
Originally Posted by Panther View Post
If your insurance company requires you to get an updated survey and the value is higher (due to upgrades) than what you have the boat insured for currently, do you need to raise the insured value on the policy or can you leave it the same?

Obviously it's best to insure the boat for what it's worth but just curious what you can/can't do?

That's actually a loaded question...

It all depends.... It depends greatly on the TYPE of valuation coverage you have.


There are several types of policies available: Agreed Value, ACV (actual cash value) and Replacement Cost (rare and only available on 2009 and newer).

Agreed Value policies are mainly based off of your purchase price, so if you paid $50,000 for the boat and it surveys back at $65,000. Sorry Charlie, you can only insure for $50,000.

ACV policies are for the market value of the boat and are usually found on older boats. The survey is good for ACV because the value is likely below what you paid for the boat years ago and you just want to ensure that your limits match the current market value since that is the maximum you will be paid out in the event of a total loss.

One thing to keep in mind, in the event of a total loss, you will typically never get paid out more than what you paid for the boat, regardless of the number on your declarations page. IF you did, that's profiting from insurance and that isn't the point of insurance. The point is to bring you back to square one and replace your financial investment, not the boat itself.

Hope this helps.
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Old 09-13-2010, 02:31 PM
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Quote:
Originally Posted by insurancegoddess View Post
That's actually a loaded question...

Agreed Value policies are mainly based off of your purchase price, so if you paid $50,000 for the boat and it surveys back at $65,000. Sorry Charlie, you can only insure for $50,000.

Hope this helps.
Is that really how it works?

For instance, I have an agreed value policy and my boat has been insured for more than I bought it for, it's insured for what it's worth. Just because I paid X $$ for something, doesn't mean that's what it's worth, right? We're paying to insure the boat for what it's worth, I'm not sure I would call it profiting, it's protecting your investment.

In my case, I purchased a boat worth $100K with a blown engine for less than that... I spent $25K to rebuild both engines that winter and it raised the saleable value of the boat significantly
from what I paid. My surveyor updated the original valuation to match my repairs/upgrades and it was insured for $93K on the hull and $5K on trialer.

PS, my question above was not related to my own boat.. A friend recently had his surveyed after doing many upgrades including new upgraded engines and drives.
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Last edited by Panther; 09-13-2010 at 02:39 PM.
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Old 09-13-2010, 04:22 PM
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Quote:
Originally Posted by Panther View Post
Is that really how it works?

For instance, I have an agreed value policy and my boat has been insured for more than I bought it for, it's insured for what it's worth. Just because I paid X $$ for something, doesn't mean that's what it's worth, right? We're paying to insure the boat for what it's worth, I'm not sure I would call it profiting, it's protecting your investment.

In my case, I purchased a boat worth $100K with a blown engine for less than that... I spent $25K to rebuild both engines that winter and it raised the saleable value of the boat significantly
from what I paid. My surveyor updated the original valuation to match my repairs/upgrades and it was insured for $93K on the hull and $5K on trialer.

PS, my question above was not related to my own boat.. A friend recently had his surveyed after doing many upgrades including new upgraded engines and drives.
"NADA/BUC Value" and "price paid" are not completely related from an insurance standpoint. When you do an agreed value policy, the purchase price of the boat determines the "value" not the NADA price... The NADA price is used as a "guide" for the carrier to help them determine if your purchase price is within a certain range.... There is not one "set" way of determining the agreed value. I can only tell you what 99% of underwriters use and do. There are so many carriers out there and each underwriter for each carrier operates in a different fashion. But if I had to put a "rule of thumb" out there... that's what I would advise.

TECHNICALLY.... you can not do an agreed value of over purchase price and/or financial interest. This is because in the event of a total loss, you stand to profit from the loss at the expense of the insurance company So, to answer both statements above... the total listed on the purchase agreement plus the amounts listed on the receipts = the amount you can insure the boat for under and agreed value....technically speaking.

If you've done an "agreed value" based on a number the is OVER your purchase price that's fine and dandy but in the event of a total loss my bets are that despite what's on the dec page, they will only pay you what you can justify as a purchase price by documentation. But who knows, you might get an adjuster that fails to check that out and then you get paid out what's on the declarations less your deductible.
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Stacy Shute (Hanlon)

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Old 09-14-2010, 06:30 AM
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Frank, sounds like you need to invoice yourself for your labor
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Old 09-14-2010, 09:54 AM
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Frank, sounds like you need to invoice yourself for your labor
I guess so!!

Hey, I recently bought a life insurance policy but my parents bought me cheap.... If I die, does my wife get nothing???

Stacy, thanks for the info.
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Last edited by Panther; 09-14-2010 at 09:57 AM.
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