Agreed Value: This is a predetermined amount that both you and the insurance company agree on when the policy is issued. In the event of a total loss, you will receive this agreed amount without any deductions for depreciation, ensuring you’re fully compensated based on the original value set in the policy.
Actual Cash Value: This coverage takes depreciation into account. If your boat is a total loss, you will be paid the current market value of the boat at the time of the loss, which could be less than what you originally paid, depending on the boat’s age and condition.