Yes that is commonly done eg see below but it would certainly be best to ask and have this confirmed by the surveyor you select.
vesselcheck.com.au/boat-insurance-surveys/Most insurers won't allow an insured value greater than the purchase price - if they do it won't be much more. Good insurers will acknowledge increased value in a boat - eg new mast - and allow the insured value to increase.
Note that most small craft surveyors don't include engine survey in their scope.