Condition and Value Surveys
A Condition and Value or Marine Insurance survey is used for Insurance or Financing purposes. This type of marine survey is not as comprehensive as the Pre-Purchase marine survey and focuses on the overall condition and value of the boat or yacht.
During the inspection portion of the survey the surveyor will examine the vessel in a non-operating condition to determine the general overall condition. He will also record the hull identification number and engine serial numbers if visible.
After the inspection portion of the survey is complete the surveyor will compile a report of findings and an estimate of the present Fair Market Value. A Condition and Value marine survey does include any examination of wetted surfaces and underwater machinery if prior arrangments have been made with a haul out facility. A sea trial is not included. Generally, the engines and generator(s) will not be run.
If the insurance company specifies that an out of water survey is required please notify the surveyor so arrangements can be discussed.
The overall condition of the vessel will be determined using the marine grading system of condition as developed by BUC Research. This condition rating will then be used with other factors to determine the overall Fair Market Value of the boat or yacht on the date of the marine survey.
The “Fair Market Value” is the most probable price in terms of money which a vessel should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
The following is the accepted marine grading system of condition:
“Excellent (Bristol) Condition” is a vessel that is maintained in mint or Bristol fashion – usually better that factory new – loaded with extras – a rarity.
“Above Average Condition” has had above average care and is equipped with extra electrical and electronic gear.
“Average Condition” is ready for sale requiring no additional work and normally equipped for her size.
“Fair Condition” requires usual maintenance to prepare for sale.
“Poor Condition” substantial yard work is required and devoid of extras.
“Restorable Condition” enough of the hull and engine exists to restore the boat to useable condition.
Note: The marine surveyor will examine the boat or yacht using ABYC Standards and US CFRs (Code of Federal Regulations) as guidelines without removing any paneling, planking, fittings and without opening up to expose parts normally concealed and without any destructive testing of any kind.
Sample Report: Condition & Valuation