Get a survey
"I'm so happy I didn't get a pre-purchase survey," said no one ever. "I really dodged a bullet," said quite a few.
New purchase
A pre-purchase out-of-water survey is highly recommended, as are mechanical and rig reports. The number of times we have seen clients pull out of a potential purchase after receiving these reports is surprisingly high. Many clients have avoided buying a money pit because of them.
Depending on the insurer, current surveys are required when vessels hit 10, 15, or 20 years old. Not obtaining a survey can limit your options greatly. Often a new survey will be required to change insurers in the future. On older vessels, it is often a case of who you choose now is who you will be with until a new survey is done.
Imagine you are an underwriter pricing cover. Would you discount a risk where someone has spent hundreds of thousands of dollars and not had it checked? No, and they do not either.
Existing vessel
Depending on the insurer, current surveys are required when vessels hit 10, 15, or 20 years old. Not obtaining a survey can limit your options greatly. If you still have the survey from when you purchased the vessel, we will use that to ensure the underwriter knows you fall into the category of owners who had the vessel checked out.
Defects in surveys
It is rare to see a survey with nothing needing to be done. In most cases, underwriters will work with you if there is a repair plan in place. For projects or big-ticket defects, it is best to call.
Sort your insurance well before settlement
Take your time and do not be pressured by anyone. Buying a vessel can be an emotional experience. Always have your insurance organised as soon as you have made the decision to buy, and before you sign the contract, especially if you are new to boating.
Some vessels and owners are easier to insure than others. Dreams and reality can be very different.
Rigging
Manufacturers generally rate standing rigging as having a serviceable life of 10 years. There are two insurance aspects to consider.
Damage to the rig
The property section of the policy would normally cover a rig under 10 years old for repair if there is a claimable incident. The insurer would replace or repair the rig with an appropriate contribution from the client depending on rig age.
This usually will not be covered on a rig 10 years old or older. While financially inconvenient, it is something most boat owners have the resources to repair.
Injury to people
This relates to the liability section. If the rig falls on someone and you have a liability claim, there is no liability cover with a rig over 10 years old. If you end up with a serious injury or death, the owner will be responsible and on their own. That is what most people do not factor in.
In a situation that gains media attention, this would also be an issue with marine authorities investigating. An owner would need serious financial resources to cover this, or they could just replace the rig.
Agreed value
We consider this to be extremely important. Most covers offer market value by default, but we prefer an agreed value. In our experience, when an owner has a total loss, having the value set at underwriting stage rather than at claim time reduces the stress of the experience considerably.
It can turn the negative into a positive because you can start shopping straight away. To obtain an agreed value, a bill of sale or a valuation from a suitable distributor is required, and we can advise on this. An agreed value does not cost more than market value.