SAMS Damage and Valuation Surveys 3 — Questions and Answers
Question 1: Under SAMS standards, when determining whether a vessel is a constructive total loss, the primary comparison is:
- Repair cost versus the vessel's original purchase price
- Repair cost versus the vessel's fair market value or agreed value (Correct answer)
- Repair cost versus the cost of a new vessel
- Repair cost versus the salvage value alone
Correct answer: Repair cost versus the vessel's fair market value or agreed value
A constructive total loss is declared when repair costs meet or exceed the vessel's insured or fair market value, making repair economically impractical.
Question 2: A surveyor is asked to value a 20-year-old wooden vessel with custom joinery and recent engine replacement. Which approach best captures its market value?
- Depreciated replacement cost approach only
- Comparable sales approach using recently sold similar wooden vessels (Correct answer)
- Original builder's invoice adjusted for inflation
- NADA or BUC guide values for fiberglass vessels of the same length
Correct answer: Comparable sales approach using recently sold similar wooden vessels
Comparable sales of similar vintage wooden vessels provide the most market-reflective valuation, accounting for the unique factors of wood construction.
Question 3: When inspecting a vessel for collision damage, the surveyor notices the engine mounts are misaligned. This finding most likely indicates:
- Normal engine vibration wear
- Significant impact force was transmitted to the engine bed structure (Correct answer)
- Improper original installation
- The engine needs routine servicing
Correct answer: Significant impact force was transmitted to the engine bed structure
Misaligned engine mounts following a collision indicate that impact forces distorted the engine bed or stringer system, requiring structural assessment.
Question 4: Which type of damage is most likely to be excluded from a standard marine insurance policy's damage coverage?
- Storm damage to the deck
- Gradual deterioration and wear from lack of maintenance (Correct answer)
- Collision with a submerged object
- Lightning strike damage to electronics
Correct answer: Gradual deterioration and wear from lack of maintenance
Most marine policies exclude gradual deterioration, wear and tear, and damage resulting from lack of maintenance as these are owner responsibilities.
Question 5: A surveyor preparing a repair estimate for hull damage should obtain bids from:
- The vessel owner's preferred contractor only
- At least two to three qualified marine repair facilities to establish a fair cost range (Correct answer)
- The nearest boatyard regardless of specialization
- Only SAMS-member repair facilities
Correct answer: At least two to three qualified marine repair facilities to establish a fair cost range
Multiple competitive bids from qualified yards establish a credible, defensible repair cost range that satisfies insurance and legal standards.
Question 6: During a damage survey of a vessel's fuel system after a fire, the surveyor's primary safety concern is:
- Documenting the brand of fuel used
- Ensuring the vessel is thoroughly ventilated and free of explosive vapor before inspection (Correct answer)
- Photographing the fuel gauge readings
- Verifying the fuel tank capacity rating
Correct answer: Ensuring the vessel is thoroughly ventilated and free of explosive vapor before inspection
Residual fuel vapors in a fire-damaged vessel present an explosion risk; thorough ventilation must precede any inspection of the fuel system.
Question 7: When valuing a high-performance sportboat for a damage survey, comparable sales data is most reliable when filtered by:
- Hull color and upholstery choices
- Engine hours, model year, and recent comparable market transactions (Correct answer)
- The owner's asking price in online listings
- Trailer value and accessories
Correct answer: Engine hours, model year, and recent comparable market transactions
Engine hours, model year, and actual closed sales of comparable vessels provide the most accurate and defensible market value basis.
SAMS Damage and Valuation Surveys 3
Under SAMS standards, when determining whether a vessel is a constructive total loss, the primary comparison is: