Boat Insurance

At Katz and Unterreiner Insurance we offer industry leading Boat Insurance policies at competitive prices to the entire Peeksill and Wappingers Falls areas. We are committed to helping you find the right policy for you, at the right price.

H12 | Boat InsuranceUnderstanding Boat Insurance: Agreed Value vs Actual Cash Value

When you are shopping for boat insurance, it is inevitable that you will come across two terms in your search, agreed value and the actual cash value. Instead of being stumped by these terms, understand them well so that you can make the best possible selection of boat insurance for your specific needs. For starters, you should realize that agreed value and the actual cash value are the two major ways in which boat insurance is offered. In addition, depreciation is basically what sets these two types of insurance apart.

To allow better understanding of either type of boat insurance, we have to specifically define what each is all about.

Agreed Value

Agreed value is probably the more common way of insuring boats. It can best be looked at as the present-day market value of your boat at the time that the insurance policy for it is drawn up. Typically, the insurer drawing up the policy is going to guarantee that they are going to insure the boat up to that limit, and they will also guarantee to pay you the full amount in the event your boat ends up a total loss.

This agreed value for boat insurance can be figured out in a number of different ways, though.

The simplest way this value can be figured out is, in the case of a newly bought boat, the purchase price you paid for it.

Another way this value can be calculated relates to a boat broker. The insurer would typically demand a written verification from a respectable, credible boat broker that works in the same market in which your boat would also end up being insured.

Finally, the last way that agreed value may be determined is by a survey from an underwriter-approved marine surveyor. This surveyor is going to give the insurer a condition, detail and valuation survey on your particular boat.

Actual Cash Value

First, you should know that an actual cash value policy can tend to be less expensive up front, but you have to factor in the depreciation. This means that these kinds of boat insurance policies are solely going to pay up to the actual cash value if your boat is declared a total loss.

This actual cash value is really applied more commonly to older boats because they have a tendency to depreciate much in the same way that older cars do. Still, this is not a hard and fast rule due to some exceptions that may apply. For instance, if your boat has been either refurbished or refitted, that will naturally increase the value of your boat.

At this point, you are likely asking yourself which of the two types of determination techniques will be applied to your boat. This issue actually comes down to a case-by-case basis that is different for every boat owner.  Please contact Eric Unterreiner to discuss your specific boat and policy needs.

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Katz & Unterreiner, Inc | 1045 Park St | Park Mall - Peekskill, NY 10566