What happens if your boat fails a structural survey?

[JPA Cate]

Failing a survey is when the x, y, z costs to repair exceed the worth of the boat.

[Rustic Charm]

Originally Posted by Ann T. Cate

Failing a survey is when the x, y, z costs to repair exceed the worth of the boat.

I wouldn't think that means a 'failed survey'. What you have described means the boats been 'written off' and the insurance will pay out the max and not repair it.

There are two types of survey at least in Australia. One is a 'valuation' survey which gives an indication of what the boat is worth. Club Marine insurance require these to be done on all steel boats that are more than 20 years old. He se I recently left them. That same survey will point out any unseaworthy faults. When I had this done last year I was not required to 'rectify' the faults that came up. It was up to me. But, if I have a loss as a result of not rectifying one or more of those faults, then I wouldn't succeed in a claim.

The other type of survey is an assessment survey. Which is commonly used by people purchasing a boat. The surveyor should go over it with a fine tooth comb looking for the faults and any thing that will need rectifying. The overall 'value' isn't the point with this one. It's about understanding what's wrong with the boat and what's it going to cost to repair it. The purchaser can then discuss this with the prospective buyer and can lower the price to cover the faults needing fixing, or can tell them to nick off.

Prior to me purchasing mine in 2011, I was interested in a boat that the boat broker claimed had been locked up for many years and as a result had disintegrated from the inside. Looking at he pictures it looked to me like it had been sunk. I wanted to enlist a surveyor but the broker wouldn't let me, claiming 'it will fail a survey'! I questioned how can any boat 'fail' a survey? It's about knowing what's wrong. He went silent on the phone and then hung up. Yep! I'd say it had been sunk.

[Rustic Charm]

Originally Posted by Reginald Bknham

Does that mean your insurance carrier will drop you and then evicted from the marina?

It's doubtful your insurer will dump you and it should have zero affect on your public liability which is all the marina is interested in. So, no you won't be kicked out.

But, your insurance provider will most likely restrict the use of your vessel. For example they may stipulate you can't leave sheltered waters. It will depend on what the structural problem is.

[JPA Cate]

RC, you may be right. I was thinking of a purchaser's survey, when, if the x, y, & z, to repair, exceeded the likely re-sale value of th boat, I would walk.

Insurance surveys on a boat you already own are a whole different issue. For them, you must correct the issues noted BEFORE your insurance will become valid.

Cheers,

[Rustic Charm]

Originally Posted by Ann T. Cate

RC, you may be right. I was thinking of a purchaser's survey, when, if the x, y, & z, to repair, exceeded the likely re-sale value of th boat, I would walk.

Insurance surveys on a boat you already own are a whole different issue. For them, you must correct the issues noted BEFORE your insurance will become valid.

Cheers,

Yes, I agree the, that would be a good example of a survey 'failing' and thus the purchaser walks away.

As I said before though, when I had a survey done for my insurance. I did not have to correct all the issues. My insurance continued. And I did check with Club Marine about this. The one item I did have to correct was my flares were out of date. But the other things did not require correcting. Too much anti foul built up; sail wear; rust spots; engine mounts; poor external paint; broken latch on a hatch, were some.

[Heath68]

The original post was around a purchase of a boat so I think that answers that very well. I personally wouldn't touch anything if it looked like it would fail.. too much to lose.

[Rustic Charm]

Originally Posted by Heath68

The original post was around a purchase of a boat so I think that answers that very well. I personally wouldn't touch anything if it looked like it would fail.. too much to lose.

The OP wasn't really clear on that and it involved a question about marina eviction. Which I took as an insurance required survey like I was suddenly required to do.

So, given you wouldn't buy a boat if it 'failed' a survey (which most boats would in some area) are you saying you would only look at virtually brand new boats?

The only way a survey can be said to have 'failed' is as Anne has indicated, the cost of bringing a boat up to scratch is a deal breaker.