Insurance Renewal Survey

[No Hurry]

When I got my insurance renewed this past summer, I was notifed that I would have to have a new survey done just prior to next year's renewal. Based on the market conditions (assuming they don't change much before next spring), it wouldn't surprise me if my boat surveys for less than my current payoff. I haven't read the weasel print in my loan documents, but I assume there are significant penalties if I don't have adequate insurance on the boat.

It's probably a little early to start worrying about this, but I was wondering if any of you have had an experience with an insurance survey dropping below the loan amount.

 

[Bill Allen]

Every survey I've ever had they've always asked me what I want the value to be. Not to say I could go crazy but any reasonable surveyor would understand. Bill

 

[ThirdHatt]

I think if you mention your concern to your surveyor (preferably before you hire him) and tell him your payoff amount, he'll understand and make sure that your value comes in just above your payoff. Surveyors will usually work with you to some degree so I think you will have nothing to worry about.

 

[Capt K]

As you've said, the insurance company has asked for the survey. There is no reason to share any updated info with your loan company. If the insurance company actually lowers your coverage and then sends it to your loan company, you may have to do the dance with them. However, they may not even catch the change, just happy that their annual copy was sent to them.

I deal with a lot of lienholders and mortgagees. Some pay attention, some don't. Bottom line, don't offer any info you are not asked for.

K

 

[Brian Degulis]

The survey values tend to be a lot higher than real market values. Your bank should be satisfied as long as the value is at least equal to the loan amount.


Brian

 

[SeaEric]

Whether the lender "notices" the change in insurance survey value or not: It sure would be nice if the insurance coverage cleared the loan balance in the (unlikely) event of a total loss. Having to write a check to pay off the loan on your destroyed boat would certainly add insult to injury.

 

[No Hurry]

Thaks for the input guys,

I'm not really sweating it, just curious more than anything. But it is good to hear that most surveyors will "work" with you on the value.