When purchasing boat insurance, one of the most important decisions you'll make is choosing between agreed value and actual cash value coverage. This choice can significantly impact your payout in the event of a total loss.
Actual Cash Value (ACV)
With ACV coverage, your insurer pays the current market value of your boat at the time of the loss, accounting for depreciation. This means the payout decreases as your boat ages.
Agreed Value
With agreed value coverage, you and your insurer agree on the boat's value when the policy is written. If a total loss occurs, you receive the full agreed amount — no depreciation calculations.
Which Should You Choose?
Agreed value is generally recommended because it provides certainty and typically results in a higher payout. While premiums may be slightly higher, the peace of mind is worth it.
Consult with your BlackArrow agent to determine the right valuation method for your specific boat and circumstances.
