Survey Says… What Every Recreational Boater Needs to Know

I took a stroll through a local boat yard last week and overheard two boaters chatting. In the tones of someone about to announce a divorce or a major illness, I heard "I have to get a survey this year." The reply was a sympathetic, drawn-out sigh and commiserating grumble.

I didn’t stick around to hear about the circumstances or the fine details. Is the survey a requirement by the boater’s insurance company? Is the boat being sold? Was there damage? There’s lots of reasons to need a survey and there are many applications. More than that: what does a survey contain? When you arrange to have a survey done, what are you buying exactly? Who is qualified to perform it? What questions should you ask? The list goes on.

To boil it all down: a survey is a surveyor’s opinion of the condition of the vessel that is being reviewed. The surveyor’s opinion is based on what they see first-hand on the day that the vessel is reviewed, and his/her experience seeing many other vessels of similar type, construction, and layout. This is balanced against standards and rules: ABYC (American Boat and Yacht Council) Standards, Transport Canada and US Coast Guard regulations and NMMA (National Marine Manufacturer’s Association) requirements.

The old adage ‘you get what you pay for’ applies here. A surveyor with many years of experience will provide a more comprehensive opinion than someone with very little experience. The better way to view a survey is to understand what the finished report will look like, what it might tell you about your boat, and what the survey will be used for.

There are a number of types of common surveys: a 'Pre-Purchase, Condition, and Valuation Survey' is likely the most common. This is typically what an insurance company will request, and it can be relied upon in a purchase or sale.

This survey will tell you a number of things:

1. The vessel particulars – length, draft, beam, displacement, year of build, builder, layout and arrangements

2. Any anomalies, changes or upgrades from the original build

3. Equipment installed -- electrical panels, electronics, navigation, safety equipment, engine, transmission, etc

4. The structure -- how it was built, current state, moisture readings (in fiberglass and wood), ultrasonic thickness tests (aluminum and steel)

5. Any issues to be addressed (when compared to a particular standard) and the opinions of the surveyor

6. An opinion of value (based on what the surveyor has seen aboard and compared with other listings of similar vessels)

Stated more simply: the surveyor will describe the vessel and will include photos depicting its condition. The surveyor will review every accessible nook and cranny, and will check fittings, hoses, cables, support structures, rigging, and running gear. Always remember: a survey will be limited to what the surveyor can see without taking anything apart. The surveyor will then compare what they see with standards and requirements. They will write up a report, with all of the descriptions and information, and divide their findings into things that pose an immediate risk, those that will pose a risk if left unaddressed, and suggestions for things to address or upgrade to bring the vessel from ‘meeting standard’ to ‘well maintained.'

So, why get a survey? Two of the most common reasons: at the request of an insurance company, or before selling the vessel.

Insurance companies want to understand their liability. They want to know if the vessel is safe and well maintained, and if there are any risks present that might result in an accident or damage. After reviewing a survey, but before issuing or continuing coverage, the insurance company may want to have certain items addressed so that their liability is limited.

A survey is a great box to check before selling a boat. It will give the current owner the opportunity to address easy-to-fix items (and therefore get the most money in the sale), and give the buyer a sense of what he/she is purchasing from an independent third party. A pre-purchase survey will also show a comparison with other similar vessels that have been sold recently, and an estimated sale price based on the comparison data versus the vessel being surveyed.

Here’s a few questions to ask in order to get the best value when arranging for a survey:

1. Surveyor qualifications – what is their background in the marine industry, and have they done surveys before? Have their surveys been accepted by an insurance company? Have any of their surveys every been refused by an insurance company?

2. What standards does the surveyor follow? Will they reference standards before making recommendations?

3. How is the valuation done? What type of comparisons does the surveyor use to determine the value of the vessel?

4. Can the surveyor provide a sample survey? (Redacting vessel and client specifics, and saving as a .pdf file is an easy way for a surveyor to provide a sneak-peak into what the client will receive once the survey is complete)

Now, is a survey a 'requirement'? The short answer is that, for pleasure craft, there is no formal requirement for inspections or surveys in many cases. For commercial vessels, however, the situation is different. Depending on the vessel’s usage and operating area, Transport Canada mandates regular inspections — typically conducted on an annual basis, as well as more comprehensive reviews every five years. These inspections require specific reports and surveys in accordance with the Canada Shipping Act. The regulatory requirements for pleasure craft are largely unstructured, so much of the responsibility falls to vessel owners themselves.

It’s my personal opinion that having a survey done shouldn’t be a dreaded experience. Yes, there is a cost in hiring a surveyor to perform the work but a quality survey will point out items that should be looked at in order to keep the boat (and the passengers aboard) safe and operating correctly. You can't put a price tag on your safety and wellbeing, so consider a survey. #tips