What is Agreed Value Yacht Insurance?

Agreed Value Yacht Insurance means you and your insurer set a fixed amount for your boat’s worth upfront. If your boat is a total loss, you get that agreed amount—no debates over depreciation or market value later.

Agreed Value vs. Actual Cash Value (ACV): Why It Matters

Most policies use Actual Cash Value (ACV), which subtracts depreciation from your boat’s original price. For example, a 10-year-old boat might be worth far less than what you paid. With Agreed Value, you lock in a specific amount (like $200,000) when you buy the policy. This avoids disputes if your boat is damaged or stolen. It’s ideal for older yachts or classic boats that might lose value over time.

Deductibles and How They Affect Your Payout

Your deductible is the amount you pay out of pocket before insurance kicks in. With Agreed Value, your deductible is a fixed percentage or dollar amount of the agreed value. For example, if your boat’s agreed value is $200,000 and your deductible is 10%, you’ll pay $20,000 for any claim. This makes budgeting easier—you know exactly what you’ll pay if something happens.

Total Loss and Constructive Total Loss Explained

If your boat is destroyed or costs more to

Frequently Asked Questions

How is the agreed value determined?

It’s usually set during policy setup based on a professional appraisal, the boat’s condition, and agreed-upon market value at the time of purchase or policy renewal.

Does agreed value insurance cost more than actual cash value (ACV)?

Yes, premiums are typically higher because the insurer guarantees a larger payout in case of total loss, avoiding disputes over depreciation later.

What if my boat’s value increases over time?

You can update the agreed value with your insurer to reflect the new worth, ensuring you’re properly covered if the boat is ever totaled.

What is Agreed Value Yacht Insurance?