This inspection is performed so that the insurance company can determine whether or not the vessel is an “acceptable risk” when it comes to the company’s “underwriting appetite.”
Insurance companies continue to tighten their guidelines regarding what they will insure. In addition, an accurate documentation of the condition of the vessel is important in the quick settlement of claims. Underwriters are interested in structural integrity, safety, and suitability for the intended use. As boats get older, these aspects becomes more critical. Underwriters also require the surveyor’s opinion of value, based on appraisal techniques. Fair market value and replacement cost are important in setting policy premium. Having had considerable experience on both sides of the insurance transaction, I can provide advice on what and how to prioritize any findings and discrepancies in order to get the “thumbs-up” as an “acceptable risk.” In some cases, I can re-inspect the areas of concern after you’ve had a chance to resolve those issues. This is critical, especially for older boats in the current insurance market.
Please Note: Up until the recently, most insurance underwriters did not routinely require a bottom inspection for renewal of a current policy. For the last couple of years, however, most recreational marine underwriters will require that the survey include a hauled inspection of the vessel’s hull and running gear.