The answer to this question is like an old Facebook relationship status: “It’s complicated.”
This is a common question, and anyone who has owned a boat understands why. The acronym B.O.A.T. is well known: Bring Out Another Thousand. You’ve already bought the boat and paid marina fees, and almost right off the showroom floor, it needs repairs and upgrades. Can’t you skip insurance for now?
In Canada, there’s no federal law that mandates boat insurance. However, in my experience, every marina—at least anywhere around the GTA—requires liability coverage. One local marina I spoke with currently needs two million dollars in coverage and is planning to raise that to five million.
There’s also the “you never know” factor. Even if an accident isn’t your fault, having an insurance company defend you brings peace of mind. And if you happen to be at fault, it’s even more reassuring. In my opinion, it shouldn’t be considered optional.
Will My Insurance Company Need a Survey?
If the boat is fresh off the showroom floor, it’s rare for an insurance company to require a survey. However, if a boat is new to you and lacks that “new boat smell,” there’s a higher likelihood you’ll need it surveyed. It all comes down to an insurance company’s underwriting guidelines. Some may require surveys only for vessels above a certain age, length, or value, while others might waive the requirement for relatively newer, used boats—especially if they’re under 10 or 15 years old and come with thorough maintenance records.
The boat’s size, complexity, and market value also factor in. Smaller, lower-value dinghies or fishing boats often don’t require a formal survey; insurers might accept photos, receipts, or a dealer’s inspection instead. Maintenance logs, previous survey reports, service records, and a clear ownership history can sometimes satisfy an insurer’s need to verify a boat’s condition.
If the boat is simply “new to you” but doesn’t have that showroom sparkle, many insurers will only ask for a survey if the vessel is older or shows signs of deferred maintenance. For boats under about five to ten years old, some insurers may trust the builder’s warranty or a recent certified dealership inspection. Certain vessels—like high-performance boats, wooden classics, or custom builds—usually have more specialized insurance requirements, making a survey more likely to be mandatory no matter the boat’s age or prior ownership.
Why Marine Surveys are (actually) Important
As a boat owner myself, I understand why people push back—or even switch insurance companies—when asked to get a survey. When I’ve bought a new boat, I’ve often thought, “I know what to look for, and it’s certainly seaworthy. Why do I need a second opinion?” And when I’ve had the boat for a while, I’ve said, “It’s my boat, and I know it’s been well maintained.”
But insurance companies see things differently. They operate on risk, and many risk factors lie outside the typical boat owner’s expertise. Are there osmotic issues in the hull? Are there non-marine-grade electrical additions creating heat hazards? Is safety equipment expired or inappropriate? Could hidden corrosion in the rigging cause a catastrophic failure?
Investigating these issues isn’t just for the insurer’s benefit—it’s also a real help to you. Just like insurance offers peace of mind, a survey eliminates unknowns, so you’re not left wondering, “What didn’t I think of?” It also reduces the odds of a mast suddenly coming down on someone’s head. Plus, a survey helps establish accurate market value, ensuring your policy coverage reflects what the boat is truly worth if there’s ever a total loss.
Finding The Right Surveyor For Your Insurance Company
A marine surveyor should be an experienced professional, often affiliated with organizations like SAMS (Society of Accredited Marine Surveyors) or IIMS (International Institute of Marine Surveying). Kiki Marine, for example, is certified by both. While these affiliations aren’t legally required, most insurance providers in Ontario want to see at least a SAMS accreditation. It’s a mark of quality that reassures both the insurer and the boat owner about the survey’s accuracy.
More Good News about an Insurance Survey
Aside from knowing your boat won’t suddenly catch fire or lose its keel, there’s another bright side: an insurance survey doesn’t have to be as extensive—or as expensive—as a pre-purchase survey. You probably already know the cushions need cleaning or that there are cracks in the gelcoat next to the cockpit. Those cosmetic details aren’t the focus of an insurance survey, which zeroes in on safety issues. As a result, it’s generally faster and cheaper.
Another upside of an insurance survey, compared to a pre-purchase or appraisal survey, is that you may not need to haul out the boat or do a sea trial. It all depends on your insurance provider. Some insurers might allow—or even prefer—an in-water inspection if the boat is relatively new, was recently surveyed, or is small enough that a haul-out seems unnecessary.
Sea trials, meanwhile, are more commonly linked with pre-purchase surveys than with insurance. Still, if your insurer or surveyor wants to check the boat’s performance in real-world conditions, they might ask for one. When in doubt, it’s always smart to confirm with both the insurance company and the surveyor.
Practical Tips if You Need to Get an Insurance Survey Done
Planning is key—coordinate haul-outs with the marina and any service providers to avoid delays. Keep detailed records of repairs, upgrades, and routine maintenance. A well-documented boat not only impresses the surveyor but can also speed up the insurance process.
Be ready to fix any issues the survey uncovers. Small problems can quickly grow into big ones if ignored. Don’t hesitate to gather quotes from multiple insurers, as each has its own criteria. If you’ve recently overhauled the engine or made major structural changes, an updated survey might be a good idea to reflect the boat’s new value accurately.
Final Thoughts
Ultimately, whether or not you need a survey for insurance hinges on your boat’s age, condition, and the insurer’s rules—but there’s no question that having proper coverage is in every boater’s best interest. With marinas typically demanding proof of liability insurance, and with the potential unknowns beneath a hull or inside an electrical system, surveys are a logical (and often reassuring) step. If nothing else, think of it as an extra layer of peace of mind, ensuring everything stays afloat—both literally and financially.