Why Do I Need an Insurance Survey for My Boat?

Boat insurance companies may require a marine survey before issuing a new policy, renewing an existing policy, or providing coverage on an older or higher-value vessel. An insurance survey gives the insurer an objective assessment of the vessel’s condition, equipment, safety systems, and value so they can better understand the vessel they are being asked to insure.

At Steel Rose Marine Services, an insurance survey is focused on documenting the vessel’s overall condition and identifying deficiencies that may affect safety, insurability, or value. While generally less extensive than a pre-purchase survey, it still includes a thorough inspection of the vessel and its major systems.

What is an insurance marine survey?

An insurance marine survey is an inspection performed primarily for underwriting purposes. Its goal is to provide the insurance company with an independent assessment of the vessel’s condition, equipment, safety-related systems, and estimated value.

Depending on the vessel and the insurer’s requirements, the inspection may include:

• Hull, deck, superstructure, and structural components
• Through-hulls, seacocks, and underwater fittings
• Propulsion and steering systems
• Fuel systems
• AC and DC electrical systems
• Batteries, chargers, and shore power systems
• Bilge pumps and drainage systems
• Plumbing and sanitation systems
• Navigation and communication equipment
• Safety equipment
• Anchoring and deck equipment
• Sailboat spars and accessible rigging components
• Interior condition and installed equipment

The exact scope may vary based on the vessel’s age, size, construction, systems, value, accessibility, and the requirements of the insurance company.

Why does an insurance company require a survey?

Insurance companies use marine surveys to better understand the condition and value of the vessels they insure.

As boats age, equipment deteriorates, systems are modified, wiring is added, hoses and fittings wear, and maintenance practices vary from one owner to another. A survey provides the underwriter with an independent snapshot of the vessel’s condition at a specific point in time.

The survey may also identify safety-related deficiencies or maintenance items that the insurer wants corrected before coverage is issued or continued.

Is an insurance survey the same as a pre-purchase survey?

No. A pre-purchase survey is generally more comprehensive and is performed for a prospective buyer who wants to understand the vessel as completely as possible before purchasing it.

An insurance survey is primarily intended to provide an insurer with the information needed to evaluate the vessel for coverage. It typically places greater emphasis on overall condition, safety, standards compliance, major systems, and valuation.

A recent pre-purchase survey may sometimes be accepted in place of a separate insurance survey, depending on the insurer, the age of the report, and the vessel involved.

Does the boat need to be hauled out?

That depends on the insurance company and the vessel.

Some insurers may accept an in-water survey, while others may require a haul-out so the hull bottom, keel, rudder, propellers, shafts, struts, underwater fittings, and other components below the waterline can be inspected.

Even when a haul-out is not specifically required, it provides the surveyor with access to important areas that cannot be fully evaluated while the vessel is in the water.

Before scheduling the survey, it is a good idea to confirm whether your insurance company has specific haul-out requirements.

Is a trial run required for an insurance survey?

A trial run is typically not required for a standard insurance survey unless specifically requested by the insurance company or vessel owner.

The primary purpose of an insurance survey is to document the vessel’s condition, safety, equipment, and value rather than provide a detailed assessment of performance while underway.

If a trial run would provide useful additional information, it can be added to the scope of the survey.

What does the insurance company receive?

Following the inspection, the client receives a detailed professional report documenting the vessel’s condition and significant findings.

The report typically includes:

• Vessel specifications and identification information
• Condition statements for major systems and equipment
• Findings related to standards compliance, deficiencies, maintenance, safety, and general marine practice
• An overall condition statement
• An opinion of fair market value and replacement cost
• Surveyor’s certification
• Photographs

The goal is to provide information that is practical, thorough, understandable, and useful to both the vessel owner and the insurance company. The survey report also provides a dated record of the vessel’s condition at the time of the inspection.

What kinds of problems can affect insurability?

Insurance companies may be particularly concerned with deficiencies that increase the risk of fire, flooding, sinking, injury, or other losses.

Examples may include:

• Deteriorated or improperly installed electrical wiring
• Unsupported or unsecured batteries
• Fuel leaks or deteriorated fuel hoses
• Corroded or leaking through-hulls and seacocks
• Deteriorated hoses below the waterline
• Inadequate or nonfunctional bilge pumps
• Missing or outdated safety equipment
• Deficiencies in shore power installations
• Structural damage or deterioration
• Significant corrosion
• Steering-system deficiencies
• Unsafe propane or gasoline installations

Not every deficiency will prevent a vessel from being insured. The insurance company ultimately determines which findings must be corrected and whether coverage will be offered.

What happens if the survey identifies deficiencies?

The surveyor documents the condition and provides recommendations based on the significance of each finding.

The insurance company may require certain items to be corrected before coverage begins, while other recommendations may be accepted for correction within a specified period.

After repairs are completed, the insurer may request photographs, invoices, written confirmation, or a follow-up inspection depending on the nature of the deficiency.

The surveyor does not determine whether a vessel is insurable. That decision is made by the insurance company.

How is the value of the boat determined?

An insurance survey typically includes an opinion of fair market value and estimated replacement cost.

Fair market value is developed by considering factors such as the vessel’s age, make, model, condition, equipment, upgrades, geographic market, and comparable vessels currently offered for sale or recently sold when reliable information is available.

Replacement cost is an estimate of what it would cost to replace the vessel with a new vessel of similar type, size, quality, and purpose.

These values help the insurer determine an appropriate amount of coverage for the vessel.

How often do I need an insurance survey?

There is no single survey interval that applies to every vessel or insurance company.

An insurer may request an updated survey as a vessel ages, when changing carriers, increasing the insured value, purchasing an older vessel, or following significant repairs or modifications.

Before scheduling the survey, ask your insurance agent or underwriter whether they have specific requirements regarding the age of the survey, haul-out, report format, or surveyor qualifications.

Do I need to be there for the insurance survey?

The owner is not always required to attend, but being available can be helpful.

The surveyor may have questions about equipment, maintenance history, recent upgrades, system operation, or the location of certain components.

If the owner cannot attend, access to the vessel should be arranged in advance, and keys, battery switches, electrical panels, lockers, and other areas should be made accessible where possible.

How much does an insurance survey cost?

Survey pricing varies based on vessel length, age, type, construction, systems, location, accessibility, and overall complexity.

Pricing is typically calculated on a per-foot basis, with adjustments made for vessels that require additional inspection time because of multiple engines, complex electrical systems, extensive equipment, multiple decks, or other factors.

Steel Rose Marine Services publishes general pricing information on the website to help clients understand typical costs before requesting a formal quote. View survey pricing details.