Agreed Value vs. Actual Cash Value: Which Boat Policy Wins?

Agreed value vs. actual cash value boat insurance: which pays more after a total loss? Compare both options for Palm Beach County boaters.

TL;DR:** Agreed value pays a pre-set amount if your boat is totaled, no depreciation deducted. Actual cash value pays what the boat is worth at the time of the loss, which can be quite a bit less. For newer or higher-value boats, agreed value almost always comes out ahead at claim time. At a Glance: Agreed Value vs. Actual Cash Value | Feature | Agreed Value | Actual Cash Value | |---|---|---| | Payout on total loss | Full agreed amount | Market value minus depreciation | | Premium cost | Typically higher | Typically lower | | Depreciation applied | No | Yes | | Best for | Newer, higher-value boats | Older, lower-value boats | | Negotiated up front? | Yes, at policy start | No | | Surprise at claim time? | Rarely | Sometimes | That table is a starting point. The real story depends on your specific boat, how long you plan to keep it, and how you use the water around Palm Beach County. What Agreed Value Actually Means When you insure a boat on an agreed value basis, you and the insurance carrier lock in a dollar amount at the start of the policy. If the boat is declared a total loss, that is the number on the check, full stop. There is no appraiser calling three weeks after a storm saying your 2020 center console has depreciated 18 percent since you bought it. You agreed on $65,000, you get $65,000 (minus your deductible, of course). This matters a lot in Florida, where a direct hit from a named storm or a serious fire can turn a perfectly maintained boat into a total loss overnight. Hurricanes do not negotiate on price. Agreed value policies require you to provide documentation upfront, usually a recent survey, purchase receipt, or both. Carriers want to make sure the agreed amount is realistic. Do not try to insure a ten-year-old deck boat for twice what it would sell…