What does a vessel insurance inspection, condition and valuation (C&V) survey, or appraisal include?
A customary survey for pre-purchase or insurance purposes is a visual inspection from accessible areas, without removal of fastened panels, appurtenances, destructive testing, taking of core samples or disassembly of any kind. The survey will note subjective observations on a particular date in time as to whether the subject vessel is sound (insofar as can be determined) and fit for intended use, with a focus on structural integrity safety and valuation. The report will comment on exterior condition of machinery, mechanical devices, pumps, plumbing, or equipment (i.e. engine blocks, tanks, generators, LPG systems, onboard household appliances, etc.) but will not convey interior condition of such appurtenances. Batteries will be looked over for proper positioning, securement, terminal protection and any evidence of case distortion. Hoses will be visually inspected for proper double clamping to thru hull fittings, squeezed to assess exterior cracks or brittleness and evaluated for marine use. Hardware such as seacocks, engine mounts, deck hatches, life rails will be looked over for signs of wear or corrosion as well as appropriate dimensions to secure passengers, expel rain or sea water or provide means of escape. Keel bolts and chainplates will be visually inspected for signs of galvanic as well as crevice corrosion, weepage or wastage. Condition of internal stringers and bulkheads will be evaluated. Sails will only be inspected where visible or when laid out. If the vessel is hauled (recommended) the bottom will be visually sighted for distortion, damage, voids, blistering and then sounded using a combination of copper as well as PVC mallets to detect any suspect delamination or core saturation. Areas of concern will be evaluated using a sovereign quantum moisture meter that will provide both deep and shallow readings of the area. Running gear (shaft, ground plates, struts, propers, zinc collars) will be visually inspected for corrosion, wear, damage, distortion or pitting. The boat's electrical system will be visually inspected where accessible to evaluate any evidence of previous arching, proper routing, bonding and appropriateness of AWG wire sizes. The helm station will be evaluated to ensure compliance with captain's proper field of vision and navigation lights can be seen from intended distance when illuminated. An inventory of safety gear will be taken and recommendations made compared to what is required by federal law for the particular vessel (i.e number and type of fire extinguishers, life jackets, pyrotechnic distress signals, placards). An opinion of Market Value will be based on new and used vessel publications for the geographic area where the vessel is located. These publications will only secondarily support the surveyor’s personal opinion, experience and judgment, which will be the predominating factor in determining fair value. Recommendations will be based on American Boat & Yacht Council (ABYC) voluntary standards, United States Coast Guard (USCG) mandatory standards and the National Fire Protection Association (NFPA) standards. Some of the USCG (33 CFR) Codes, NFPA Codes, and ABYC Recommendations that are in effect today may have been enacted after the vessel was manufactured. The recommendations thought to be necessary for safety will be addressed.
Important: Prior to any survey please ensure the vessel is clean and clear of any personal effects, gear, oil / water in bilge, furniture or other items which might block access or vision. The vessel will be surveyed as found, and only to the extent of what can be seen, what is accessible and what is limited. All manuals, maintenance log, receipts, registration, USCG Documentation Papers, and a copy of the previous survey should be onboard. Masts and spars must be moved to ground level. Rigging will not be inspected above deck level.
What about Engine Diagnostics or a Sea Trial?
A Pre-Purchase or Insurance Survey (priced between $15 - $22 per foot) does not include sea trial or internal engine diagnostics. A handful of surveyors will offer "one stop shopping" with supplemental services beyond the standard agreement, for an additional fee: sea trials, oil analysis, compression testing, or engine diagnostics, etc. Likely only a few surveyors within that handful are certified marine mechanics. From a value added standpoint, it is recommended clients procure a certified marine mechanic to perform compression tests or engine diagnostics. The cost will be similar and results more conclusive. Your insurance carrier will likely manuscript a clause into the policy agreement that requires a vessel be looked over or tuned up by a certified mechanic every 1 - 2 years, upon inception of coverage, or upon the advice of your surveyor. However, the underlying intent of a Condition & Valuation report is to determine: safety, soundness and valuation of the vessel, not internal condition of the propulsion system or handling characteristics in a seaway. A sea trial by licensed captain or engine survey by certified mechanic are services separate from the customary condition & valuation report.
Should clients attend their Survey?
We especially recommend at least a representative be present to furnish access, and grant permission to board and conduct the survey. However, boats can present somewhat of an enigma, a distracted surveyor is in no one's best interest. In a perfect world the client would only approach the surveyor at the end of the survey to go over findings. In general, surveyors are happy to provide verbal comments (during the survey) but remember a survey is not over until the report is written, there is much to mull over prior to issuing a final verdict.
How long does the process take?
Anywhere from 5 to 12 hours depending on the size of the vessel then another 5 to 8 hours in the office to thoroughly prepare the survey report. Larger vessels may take 1-3 days.
What should be known about private organizations and societies that assist independent marine surveyors?
There is a world of private organizations that assist independent marine surveyors. All compete to obtain your business and as such, a conflict of interest inherently exists. That is something to be aware of. No one society: governs, certifies, licenses, accredits or qualifies a marine surveyor's operation, nor does the coast guard or government. The unfortunate reality of the trade is a lack of requirements, regulation and licensure that can create formidable challenges surrounding consumer protection. When seeking a reputable marine surveyor, it is best to ensure they practice ABYC, USCG and NFPA standards over any advertised, listed or paid affiliation.
What are and what is the difference between private organizations that independent marine surveyors may or may not choose to affiliate with?
Five private organizations in the United States and many others world wide assist independent marine surveyors. Overseas there is the International Institute of Marine Surveying (IIMS), Professional Yacht Designers & Surveyors (YDSA) Association, Royal Institution of Naval Architects (RINA), as well as the Society of Consulting Marine Engineers and Ship Surveyors (SCMS) in the UK. In Australia there is the Australasian Institute of Marine Surveyors (AIMS). Beyond that, the Association of Indonesian Marine Surveyors in Indonesia (AIMI), the Association of Marine Surveyors in British Columbia (AMSBC) Canada, Society of Consulting Marine Engineers & Ship Surveyors (SCMS) in London, Swedish Independent Marine Surveyors Association (SIMSA) and more.
Domestically, a few reputable organizations include: the United States Surveyors Association (USSA), American Registry of Marine Surveyors (A.R.M.S), Association of Certified Marine Surveyors (ACMS), Society of Accredited Marine Surveyors (SAMS), and National Association of Marine Surveyors (NAMS). NAMS is the oldest organization, established in 1962. Both USSA and SAMS appeared afterwards in the mid 1980s (1986 and 1987 to be exact), ACMS was established during the mid 1990s and A.R.M.S. came to be in 2008.
Be mindful, marine surveyors are cut from a diverse cross section of maritime backgrounds, which could include: boat captains, engine mechanics, boat builders, marine insurance specialists, professional or competitive sailors, etc. Most all are self-employed. They use various credentials, letters or terms (i.e. “Accredited,” “Certified,” or “Qualified”) to describe their operations. Regardless of what you hear or are told, these qualification terms represent training and certification through a number of private organizations that may have marketed themselves aggressively, claiming to be the best or the only one.
Why has East Coast Marine Surveyors chosen to affiliate with USSA and IIMS?
Both organizations are 30+ years established and have remained non-political and non-biased in avoiding conflicts of interest. Accredited members are held accountable to continued education requirements, published ABYC, USCG and NFPA standards as well as adherence to strict societal code of ethics. Founded in 1987 United States Surveyors Association, USSA was originally as a captains licensing school and eventually became endorsed by the American Institute of Marine Underwriter's (AIMU) as a highly reputable institute for marine surveying professionals. Offices are based in Fort Myers, FL and have trained a generation of working surveyors including members of USSA holding the AMMS designation as well as members of SAMS holding the AMS designation. All accredited members are subject to a vetting process, code of ethics, resume documentation and continuing education requirements. Surveyors holding the AMMS designation have passed their accreditation exams with a score of 90% or better and submit copes of reports every year that are maintained on file with Headquarters. The International Institute of Marine Surveying, IIMS, celebrated its 25th Anniversary in 2015. As a progressive forward thinking organization, IIMS is independent, non political, and promotes the professionalism and training of Marine Surveyors worldwide. There are approximately 1000 full members (MIIMS) only, in 90 different countries. IIMS is the largest organization of its kind and seeks is affiliate with Coast Guards, Insurance Companies and Ship Owners. Full membership (MIIMS) requires committee review of resume, training, professional references, background check, sample survey reports and proof of practicing marine survey or consulting work for a minimum number of years.
Can a Bank or Insurance company require use of a particular marine surveyor or affiliation?
An insurance company or lender can reject any surveyor's report if they do not approve the content or there is inadequate content to make a sound underwriting decision. However, rejection of a survey based on paid private societal affiliations alone would be a conflict of interest. In most states such action would be illegal, classified as restriction of trade or interference with business. A boat survey should be performed by an independent (non-biased) professional so that no conflict of interest is present. No undue influence should impact your choice of independent marine surveyor or determine who is best qualified to inspect your vessel.
A customary survey for pre-purchase or insurance purposes is a visual inspection from accessible areas, without removal of fastened panels, appurtenances, destructive testing, taking of core samples or disassembly of any kind. The survey will note subjective observations on a particular date in time as to whether the subject vessel is sound (insofar as can be determined) and fit for intended use, with a focus on structural integrity safety and valuation. The report will comment on exterior condition of machinery, mechanical devices, pumps, plumbing, or equipment (i.e. engine blocks, tanks, generators, LPG systems, onboard household appliances, etc.) but will not convey interior condition of such appurtenances. Batteries will be looked over for proper positioning, securement, terminal protection and any evidence of case distortion. Hoses will be visually inspected for proper double clamping to thru hull fittings, squeezed to assess exterior cracks or brittleness and evaluated for marine use. Hardware such as seacocks, engine mounts, deck hatches, life rails will be looked over for signs of wear or corrosion as well as appropriate dimensions to secure passengers, expel rain or sea water or provide means of escape. Keel bolts and chainplates will be visually inspected for signs of galvanic as well as crevice corrosion, weepage or wastage. Condition of internal stringers and bulkheads will be evaluated. Sails will only be inspected where visible or when laid out. If the vessel is hauled (recommended) the bottom will be visually sighted for distortion, damage, voids, blistering and then sounded using a combination of copper as well as PVC mallets to detect any suspect delamination or core saturation. Areas of concern will be evaluated using a sovereign quantum moisture meter that will provide both deep and shallow readings of the area. Running gear (shaft, ground plates, struts, propers, zinc collars) will be visually inspected for corrosion, wear, damage, distortion or pitting. The boat's electrical system will be visually inspected where accessible to evaluate any evidence of previous arching, proper routing, bonding and appropriateness of AWG wire sizes. The helm station will be evaluated to ensure compliance with captain's proper field of vision and navigation lights can be seen from intended distance when illuminated. An inventory of safety gear will be taken and recommendations made compared to what is required by federal law for the particular vessel (i.e number and type of fire extinguishers, life jackets, pyrotechnic distress signals, placards). An opinion of Market Value will be based on new and used vessel publications for the geographic area where the vessel is located. These publications will only secondarily support the surveyor’s personal opinion, experience and judgment, which will be the predominating factor in determining fair value. Recommendations will be based on American Boat & Yacht Council (ABYC) voluntary standards, United States Coast Guard (USCG) mandatory standards and the National Fire Protection Association (NFPA) standards. Some of the USCG (33 CFR) Codes, NFPA Codes, and ABYC Recommendations that are in effect today may have been enacted after the vessel was manufactured. The recommendations thought to be necessary for safety will be addressed.
Important: Prior to any survey please ensure the vessel is clean and clear of any personal effects, gear, oil / water in bilge, furniture or other items which might block access or vision. The vessel will be surveyed as found, and only to the extent of what can be seen, what is accessible and what is limited. All manuals, maintenance log, receipts, registration, USCG Documentation Papers, and a copy of the previous survey should be onboard. Masts and spars must be moved to ground level. Rigging will not be inspected above deck level.
What about Engine Diagnostics or a Sea Trial?
A Pre-Purchase or Insurance Survey (priced between $15 - $22 per foot) does not include sea trial or internal engine diagnostics. A handful of surveyors will offer "one stop shopping" with supplemental services beyond the standard agreement, for an additional fee: sea trials, oil analysis, compression testing, or engine diagnostics, etc. Likely only a few surveyors within that handful are certified marine mechanics. From a value added standpoint, it is recommended clients procure a certified marine mechanic to perform compression tests or engine diagnostics. The cost will be similar and results more conclusive. Your insurance carrier will likely manuscript a clause into the policy agreement that requires a vessel be looked over or tuned up by a certified mechanic every 1 - 2 years, upon inception of coverage, or upon the advice of your surveyor. However, the underlying intent of a Condition & Valuation report is to determine: safety, soundness and valuation of the vessel, not internal condition of the propulsion system or handling characteristics in a seaway. A sea trial by licensed captain or engine survey by certified mechanic are services separate from the customary condition & valuation report.
Should clients attend their Survey?
We especially recommend at least a representative be present to furnish access, and grant permission to board and conduct the survey. However, boats can present somewhat of an enigma, a distracted surveyor is in no one's best interest. In a perfect world the client would only approach the surveyor at the end of the survey to go over findings. In general, surveyors are happy to provide verbal comments (during the survey) but remember a survey is not over until the report is written, there is much to mull over prior to issuing a final verdict.
How long does the process take?
Anywhere from 5 to 12 hours depending on the size of the vessel then another 5 to 8 hours in the office to thoroughly prepare the survey report. Larger vessels may take 1-3 days.
What should be known about private organizations and societies that assist independent marine surveyors?
There is a world of private organizations that assist independent marine surveyors. All compete to obtain your business and as such, a conflict of interest inherently exists. That is something to be aware of. No one society: governs, certifies, licenses, accredits or qualifies a marine surveyor's operation, nor does the coast guard or government. The unfortunate reality of the trade is a lack of requirements, regulation and licensure that can create formidable challenges surrounding consumer protection. When seeking a reputable marine surveyor, it is best to ensure they practice ABYC, USCG and NFPA standards over any advertised, listed or paid affiliation.
What are and what is the difference between private organizations that independent marine surveyors may or may not choose to affiliate with?
Five private organizations in the United States and many others world wide assist independent marine surveyors. Overseas there is the International Institute of Marine Surveying (IIMS), Professional Yacht Designers & Surveyors (YDSA) Association, Royal Institution of Naval Architects (RINA), as well as the Society of Consulting Marine Engineers and Ship Surveyors (SCMS) in the UK. In Australia there is the Australasian Institute of Marine Surveyors (AIMS). Beyond that, the Association of Indonesian Marine Surveyors in Indonesia (AIMI), the Association of Marine Surveyors in British Columbia (AMSBC) Canada, Society of Consulting Marine Engineers & Ship Surveyors (SCMS) in London, Swedish Independent Marine Surveyors Association (SIMSA) and more.
Domestically, a few reputable organizations include: the United States Surveyors Association (USSA), American Registry of Marine Surveyors (A.R.M.S), Association of Certified Marine Surveyors (ACMS), Society of Accredited Marine Surveyors (SAMS), and National Association of Marine Surveyors (NAMS). NAMS is the oldest organization, established in 1962. Both USSA and SAMS appeared afterwards in the mid 1980s (1986 and 1987 to be exact), ACMS was established during the mid 1990s and A.R.M.S. came to be in 2008.
Be mindful, marine surveyors are cut from a diverse cross section of maritime backgrounds, which could include: boat captains, engine mechanics, boat builders, marine insurance specialists, professional or competitive sailors, etc. Most all are self-employed. They use various credentials, letters or terms (i.e. “Accredited,” “Certified,” or “Qualified”) to describe their operations. Regardless of what you hear or are told, these qualification terms represent training and certification through a number of private organizations that may have marketed themselves aggressively, claiming to be the best or the only one.
Why has East Coast Marine Surveyors chosen to affiliate with USSA and IIMS?
Both organizations are 30+ years established and have remained non-political and non-biased in avoiding conflicts of interest. Accredited members are held accountable to continued education requirements, published ABYC, USCG and NFPA standards as well as adherence to strict societal code of ethics. Founded in 1987 United States Surveyors Association, USSA was originally as a captains licensing school and eventually became endorsed by the American Institute of Marine Underwriter's (AIMU) as a highly reputable institute for marine surveying professionals. Offices are based in Fort Myers, FL and have trained a generation of working surveyors including members of USSA holding the AMMS designation as well as members of SAMS holding the AMS designation. All accredited members are subject to a vetting process, code of ethics, resume documentation and continuing education requirements. Surveyors holding the AMMS designation have passed their accreditation exams with a score of 90% or better and submit copes of reports every year that are maintained on file with Headquarters. The International Institute of Marine Surveying, IIMS, celebrated its 25th Anniversary in 2015. As a progressive forward thinking organization, IIMS is independent, non political, and promotes the professionalism and training of Marine Surveyors worldwide. There are approximately 1000 full members (MIIMS) only, in 90 different countries. IIMS is the largest organization of its kind and seeks is affiliate with Coast Guards, Insurance Companies and Ship Owners. Full membership (MIIMS) requires committee review of resume, training, professional references, background check, sample survey reports and proof of practicing marine survey or consulting work for a minimum number of years.
Can a Bank or Insurance company require use of a particular marine surveyor or affiliation?
An insurance company or lender can reject any surveyor's report if they do not approve the content or there is inadequate content to make a sound underwriting decision. However, rejection of a survey based on paid private societal affiliations alone would be a conflict of interest. In most states such action would be illegal, classified as restriction of trade or interference with business. A boat survey should be performed by an independent (non-biased) professional so that no conflict of interest is present. No undue influence should impact your choice of independent marine surveyor or determine who is best qualified to inspect your vessel.
