SHOULD
HAVE DONE THE SURVEY FIRST
It’s
a familiar story around our office; the client has already
purchased a vessel and now finds themselves in need of a survey.
Occasionally, the client did not know the trade of marine
surveying existed; more often they decided to save the expense
of the marine survey when buying the vessel. Most often the
boat fits on a trailer and will be stored in the driveway.
The surprise comes when they decide to insure the vessel (or
get a loan or a slip).
Many
insurance carriers require a marine survey before binding
the coverage. Underwriting criteria differs, but can include
length, age or value of the vessel. Whatever their criteria,
insurance underwriting often dictates the need for a marine
survey. That is when we get the call.
Client,
“My name is Mark H., and my insurance company needs
me to get a marine survey on my vessel. I bought the vessel
about two months ago and have been fixing it up; it’s
in great shape”.
Surveyor,
“O.K. Mark, we have just the product for you, a slightly
less extensive inspection and shorter report, designed for
owners seeking insurance. Price is slightly less than the
survey we offer buyers, on your 25’ vessel that will
save you $100.00”.
“Great,
let’s schedule the survey for tomorrow morning so I
can have my insurance in place for this weekend” Mark
replies.
Everything
is smooth so far and then I arrive at the vessel. Within moments
I notice a group of unusual stress cracks on the starboard
forward chine. After a brief introduction I begin the survey
and point out the unusual stress cracks. Mark explains “I
bought the vessel from a friend and went fishing on it several
times, I am sure it is in good condition”.
Thirty
minutes later I feel like the doctor bringing bad news to
the patient’s family, in the waiting room. “Well
Mark, I have some bad news. I found the cause of the stress
cracks on the chine, the wood coring for the stringers is
deteriorated”.
“That
sounds bad, is it repairable?” Mark asked.
“It’s
repairable, but it is going to require some time and effort
or money; and you won’t be going fishing this weekend”.
This
is a true story and though perhaps more drastic than the average
findings, it is illustrative of a typical situation. Mark
saved about $100.00 on the cost of the survey our company
would have performed for him by being an owner versus a buyer.
He chose to effect the repairs himself, the cost of material
alone was significantly more than his savings, in fact the
materials cost was equal to the cost of a pre-purchase survey.
Mark’s labor cost was 16 hours, spread over three weekends.
In Mark’s case that was equivalent to four rounds of
golf, eight surf sessions or twelve long bike rides with the
wife and children.
Many
boat owners are not as fortunate as Mark, and don’t
possess the skills to repair deteriorated stringers or other
significant problems and must hire professionals at labor
rates often approaching $100.00 per hour.
Mark
just purchased a new boat; he hired us to inspect it before
he wrote the check. He said “this is the best insurance
I can buy!”
Marine
surveyors provide benefits to boat buyers, not just buyers
of large yachts. Surveys are often required for insurance
and finance and lately by many marinas. Mark’s case
illustrates a common misconception that a survey isn’t
necessary. Check with your insurance company, lender or marina
to see if you will need a marine survey, even if you don’t
want one. Carefully consider the benefits of a survey against
the expense, before you buy the boat and then choose your
surveyor wisely.
