This is probably one of the most costly issues boat owners face when they have a claim and it’s important to have the right type of policy should you have a loss. Actual Cash value means that if your boat is damaged the insurance company will pay you the replacement cost minus depreciation. An older boat regardless of how good of condition it’s in can be depreciated significantly leaving you with only getting paid a portion of what it may be worth.
Replacement cost coverage means that the insurance company will pay you for what it would cost to buy a new boat of the same like and kind. These boat insurance policies are very rare. The best type of policy to get is an Agreed Value boat insurance policy. This means that when you insure the boat both you and the insurance company agree on the value to insure it for. So, if you have a total loss, the insurance company will pay this amount in full for the claim. It is likely that the boat insurance company will adjust this amount annually and may require a survey to prove the value of the boat.
