When you need yacht insurance Cape Coral, one of the most important things you should do is get a boat survey. While every insurance company will have unique guidelines on how a survey needs to be done, it is always good to ask them directly. It is a common practice that an insurance company will require an out-of-water survey to be done if your vessel is more than 10 years old or has been moored permanently. The out of water survey is considered to be the most comprehensive survey.
Another reason why you may be required to get a boat survey when applying for yacht insurance Cape Coral is if your boat is either old or of an unknown make or model. The insurer will require a survey to confirm that the boat has been constructed properly and that it was constructed by a well-known or reputable builder.
Will you need a survey if using the same insurance company used by the seller of the boat?
It will depend. Some insurers will be comfortable with using an existing report if the survey was done by the current owner. However, in most cases, you will be required to get a new survey. This is because a boat survey is a snapshot of the boat’s condition at the time the survey was done. A lot can change within the course of a few months.
Can you get an in-water survey alone?
The short answer is no. There are, however, some insurance companies that will accept an in-water survey only. The reason out-of-water surveys are recommended is that they are thorough. They help the surveyor access all the areas of a yacht. As a result, insurers are able to get a more comprehensive report about a boat with out-of-water surveys. If a survey was just an in-water survey, the insurance company will not be able to know if a problem was caused by existing damage or not.
What is the difference between pre-purchase survey and an insurance survey?
There are boat sellers who show insurance surveys and try to pass them off as pre-purchase surveys. What you need to understand is that a pre-purchase survey is a more thorough evaluation of a vessel. It involves a comprehensive inspection of the boat including out-of-water inspections and sea trials. The surveyor will also look at the condition of the engine, operation of electronics, navigation gear and lighting. An insurance survey, on the other hand, only considers if a boat is an acceptable risk to insure. With that in mind, never accept an insurance survey as a pre-purchase survey.
Last but not least, you have to understand the difference between agreed value versus market value. An agreed value does not fluctuate. Talk to your insurer about this when applying for yacht insurance Cape Coral.