Leonard & Shrew’s comments offers a summary and personal insight into types of surveys and surveyors but trust me real surveyers conduct many more types of survey inspections than this though most won’t apply to this crowd. The purchase survey is much more involved than noted in the aforementioned article. I always find it amusing to hear a buyer had a purchase survey on a 40ish footer that took four or five hours and the eight page report including two full pages of disclaimers and comments like Hull Construction: Fiberglass, or Tankage: Two metal, or Decks: Teak, or Batteries: 12 volt. The poor buyer who paid for this type of work just threw away his money unfortunately. A thorough survey should include more than just its condition with recommendations prioritized according to structural and systems importance. Such a survey should include specifics such as shaft material, dia, prop dimensions, pump types, maker and model, engine make, model, serial and reference to engine’s particulars, steering set up, linkages, rod, cable, chain or hydraulic and details of each. In other words the buyer should be able to refer to the survey and find the answer to his vessels equipment, construction, layout etc. etc etc.
The C&V or Condition Valuation survey is used by underwriters and lending institutions to assess risk and reasonable market value. The amount of detail and methods of inspection are generally dictated by the insurance company. All serious marine insurance companies have in house people who know boats and therefore how to read a survey. Then that are auto and home writers who decided there is money in writing marine but don’t want to spend the money to have true marine experts in-house. Many times these companies don’t understand the difference between a yawl and a trawler but only see the market value and replacement value and the number of recommendation in the report and not their meaning. I’ve actually done C&V’s for a number of these companies and got calls at the office with questions like:
Survey Bristol 40’ Ketch: Company underwriter wants to know why I don’t say ‘Power of Sail’
Survey notes Battery Ground is Negative : Underwriter says why include this if it’s always Neg.
Survey Notes nylon anchor rode: Underwriter calls out spelling should be ‘ rope not rode ‘
Survey Notes Black Iron Fuel Tanks per Specs: Underwriter is not interested in color
Survey Notes vessel Twin Screw: Underwriter wants to know what the screws are for
Survey Notes Gypsy Head Windlass: Underwriter advises that ‘ Gypsy ‘ is inappropriate term
Survey Notes Large Saloon: Underwriter didn’t know vessel was a tavern hence bad risk
Companies like this usually aren’t interested in details and therefore are satisfied with weak nebulous reports or “ file stuffers “ in order to comply with company guidelines. Those that don’t ask for a survey are usually worse unless the agent or somebody knows the vessel and more importantly the assured. Quite often the claims process is one of a continuous nightmare as it’s very rare they have a marine claims specialist in-house. The old adage that you don’t know your insurance company until you report a loss is very very true. So bottom line is most of the time you get what you pay for. The exception will always be having a strong knowledgable agent who knows marine, his customer and how to wrangle best rates and coverage from the market.
Valuation surveys are almost always conducted for lending institutions, lawyers working on settlements, courts of law, government such as IRS, or donations. As a surveyor I always hated the aspect of valuations since values are really a moving target often controlled by geographic region, commercial applicability and service, and of course market demand which applies to this forum and cruising trawlers. But many other factors can affect values that a surveyor has a tough time working with. Example 50’ worn out old Pacemaker selling with the slip in very desirable marina with almost never any availability. The value is in the slip not the vessel. Or a commercial specialized fish boat where the fishery has vanished. Vessel could have cost a $1,000,000.00 to build a few years ago but is frankly just about scrap. Oil field crew and supply boats where production has fallen off and the fleet is reduced 50%. A Head Boat or passenger Excursion vessel without a landing to work out of or a windjammer schooner without a USCG COI. Each and every one of these examples controls a vessel’s value and it’s a job this surveyor always hated.
Rick