When it boils down to picking between an Agreed Value Policy or an Actual Cash.
Value Policy for their boats, people are often left feeling confused. Both these insurance coverages are extremely different and come with their own set of advantages and disadvantages. Listed below are their differences to help you choose the most suitable policy for your boat.

Agreed Value Policy
This kind of a policy covers your boat in an event of a loss for the value agreed upon while buying the policy.

Actual Cash Value Policy
Actual Cash Value Policy is quite different from an Agreed Value Policy in the sense that all the property losses covered are subject to depreciation. In simple terms, the boat owner receives only the value of the boat at the time it was lost, stolen or damaged. Since many variables such as depreciation, damage, and wear and tear are taken into consideration, chances are that you will get back very less in comparison to what you would receive with an Agreed Value Policy. However, a lot of people prefer this coverage as it is more affordable in comparison. Additionally, the claim process tends to be far easier and quicker.
It is always advised that you compare both the policies extensively before purchasing. You know what you need best.