A condition and valuation survey, or C&V, is an inspection of a boat's condition that ends with the surveyor's opinion of what it's worth. Discover Boating calls it the most common type of boat survey: the one done when you buy a used boat, covering the entire boat and its propulsion systems.
Who asks for a C&V
- Buyers, before they commit. The condition part finds the defects, the value part tells them whether the price is fair.
- Lenders, before they finance. Discover Boating notes that many won't finance a used boat without a survey.
- Insurers, before they cover an older or valuable boat, often as an "insurance C&V".
- Owners who want an agreed value on their policy, or a record of condition before a long passage.
C&V, pre-purchase and insurance surveys
| Pre-purchase C&V | Insurance C&V | |
|---|---|---|
| Ordered by | The buyer | The owner, for the insurer |
| Scope | The whole boat and its propulsion | A list of specific items, less comprehensive |
| Haul-out and sea trial | Usually both | Often out of the water; a sea trial less often |
| Findings | Everything that affects value, safety or use | What raises the risk of sinking, fire or injury |
| Value | Market value, for the purchase | Market value, sometimes replacement cost |
The scope column is from Discover Boating, which describes the insurance C&V as generally less comprehensive and sticking to a list of specific items. An Australian example of such a list is RACV's out of water survey requirements: structure, through-hulls, wiring, safety equipment with expiry dates, bilge pumps, anodes, the rig and keel bolts on a yacht, and a current valuation.
The condition part
The surveyor works through structure, systems, safety equipment and the rig, afloat and out of the water, and writes each finding with a recommendation. The yacht survey checklist lists what gets checked, and what is a marine survey explains the three stages of a full survey.
Condition drives value. A wet deck core, osmotic blisters, an engine past its hours or standing rigging of unknown age all come off the figure, and the report should say how much.
The valuation part
What value. Usually fair market value: what a willing buyer would pay a willing seller, neither under pressure, both knowing the facts. Insurers sometimes want replacement cost as well. The report should say which one it gives.
How it's set. From comparable boats, adjusted for this one:
- Comparables. The same or similar model, similar age and engines. Sold prices carry more weight than asking prices, because they show what buyers actually paid.
- Adjustments. Up or down for condition, engine hours, equipment, sails and the findings in the report.
- The figure, with the reasoning shown, so a lender or a buyer's broker can follow it.
Its limits. Surveyors give values largely because lenders and insurers require them. The late surveyor David Pascoe argued that a surveyor isn't the best person to judge market value, and that boats lack the wholesale market cars have, so treat the value as an informed opinion. BoatUS sees its use for buyers: the surveyor values the boat without the broker's or seller's influence, and a value well below your offer is grounds to renegotiate.
The boat appraisal report template sets out the comparables table and the wording.
What the insurer does with the value
Less than many owners expect. Gallagher Skippers' Plan says most insurers don't use a survey's value estimate, and insure for what you paid plus tenders, accessories, improvements and tax. The value matters most on agreed value cover, where the insurer commits to a figure up front. See the boat insurance survey guide, and how long a survey stays valid.
For surveyors: condition and value in one report
A C&V is two jobs in one report: findings that hold up and a value you can defend. Axsail drafts the findings from what you say on board and includes a valuation section with market value and replacement cost, comparables and your remarks, ready for you to check and finalise. See how it works.