What is the difference between Replacement Cost, Actual Cash Value and Agreed Value relative to boat insurance?

What is the difference between Replacement Cost, Actual Cash Value and Agreed Value relative to boat insurance?

This is a very common question because boat owners want to make sure if something happens to their boat they have the right type of boat insurance to cover their loss.

Replacement cost means that at the time of an insurance settlement, the claim payout is the current cost to replace your boat with one that is of the same like, kind, and quality.

Actual cash value (ACV) means that that at the time of an insurance settlement, the claim payout is replacement cost less any depreciation.

Agreed value boat insurance policy means that if your boat is deemed a total loss, the claim payout is the specified agreed value of your boat and may need to be periodically reevaluated. Agreed value is best type of a boat insurance policy to ensure if a loss happens, you get the entire value of your boat, agreed upon by you.

2018-07-17T00:33:39+00:00July 17th, 2018|

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