I bought my boat for $150,000 during the COVID boom. In 2026, the market corrected, and it’s only worth $90,000. It caught fire and burned to the waterline. I had an “Agreed Value” policy for $150,000. My slip neighbor had an “Actual Cash Value” policy. He got $90,000. I got $150,000.
Key Takeaways
- Agreed Value is King: The insurer agrees upfront on the value. In a total loss, they pay that number. No depreciation. No market arguments.
- Actual Cash Value (ACV) is a Gamble: ACV pays “Market Value at time of loss.” With boats depreciating rapidly, this leaves you underwater on your loan.
- Partial Loss Implications: Even with Agreed Value, check how partial losses (repairs) are handled. Some policies pay Agreed Value for total loss but depreciate parts (New for Old) on repairs.
- Review Value Annually: If the market spiked up, your Agreed Value might be too low. If it crashed down, your Agreed Value is a safety net (but the insurer might force you to lower it at renewal).
The “Why” (The Trap)
The trap is “Stated Value” vs. “Agreed Value.”
They sound the same.
- Agreed Value: We agree to pay $100k.
- Stated Value: You state it’s worth $100k, but we reserve the right to pay the lesser of the Stated Value or the ACV. It is a deceptive term used by cheap insurers. Always verify it is truly “Agreed.”
The Investigation (Policy Types)
- Hagerty / BoatUS: Strong Agreed Value programs.
- Progressive: Offers both. You have to select “Agreed Value” and pay a slightly higher premium.
- Bank Requirement: Lenders almost always require Agreed Value equal to the loan amount.
Comparison Table
| Policy Type | 2022 Purchase Price | 2026 Market Value | Payout |
| Agreed Value | $150,000 | $90,000 | $150,000 |
| Actual Cash Value | $150,000 | $90,000 | $90,000 |
| Stated Value | $150,000 | $90,000 | $90,000 |
Step-by-Step Action Plan
- Check Your Dec Page: Look for the letters “AV” (Agreed Value) or “ACV” (Actual Cash Value) next to the Hull Limit.
- Get a Survey: To lock in a high Agreed Value on an older boat, you need a recent marine survey proving its condition.
- [IMAGE: Declarations page highlighting ‘Agreed Value: $150,000’]
- Don’t Let Them Lower It: At renewal, the insurer might say “We are dropping the value to $130k.” Fight this. Send receipts for upgrades (electronics, re-power) to justify keeping the value high.
FAQ
Does Agreed Value cost more?
Yes, typically 10-20% more than ACV, but it ensures you don’t lose your equity.
Can I insure for more than I paid?
Only if you got a steal and can prove the market value is higher with a survey.