Insurance Basics

Agreed Value vs. Actual Cash Value: What's the Difference?

Two terms come up often in boat insurance: agreed value and actual cash value. Here is a plain-language overview. Policy terms vary, so always review the actual policy.

Agreed value, in general

An agreed value policy generally sets the boat's insured value when the policy is written. In a covered total loss, the payout is typically based on that agreed amount, subject to the policy terms and deductible.

Actual cash value, in general

An actual cash value policy generally considers depreciation at the time of a loss, so a payout may reflect the boat's market value then rather than its original value.

Which is right for you?

It depends on your boat, budget and what insurers offer for it. Ask your insurance professional to explain the valuation basis of any policy you are considering.

Frequently asked questions

General information only, not legal or insurance advice. Coverage availability and terms vary by insurer and policy.

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