Agreed Value/ Actual Cash Value Marine Insurance

Find out about our boat valuation methods for insurance

We can insure boats based on two valuation methods: Agreed Value and Actual Cash Value.

Agreed Value

Most commonly, we insure boats based on Agreed Value.

"Agreed Value" is the current market value of the boat at the time the policy is written. We agree to insure it to that limit and we will pay that amount if the boat is a total loss.

“Agreed Value” can be determined by:

• The purchase price if the vessel is newly purchased.
• Written confirmation from a reputable Boat Broker who operates in the same market in which the vessel would be insured.
• A survey by an underwriter approved marine surveyor, which provides a Condition, Detail and Valuation Survey on the vessel.

Actual Cash Value

"Actual Cash Value" policies cost less up front but factor in depreciation and only pay up to the actual cash value at the time the boat is declared a total loss.

“Actual Cash Value” more commonly applies to older boats since they depreciate over time, just like cars do. However, there are exceptions. For example some boats may be refurbished / refitted, which could enhance the value.

The most appropriate valuation method will be determined on a case-by-case basis.
 

To find out more, contact Harbour Insurance Services Ltd – Marine Insurance Broker today.