Personal Watercraft Insurance, Understand the Terminology
In the world of marine insurance there are two options for valuing a boat and you need to understand the difference.
Agreed value – A policy with an “agreed value” will cost a bit more up front but they cover a partial or total loss of your pleasure boat at a certain dollar amount. In other words, there is no process whereby the boat can be said to have depreciated over time.
Actual cash value – A policy with an “actual cash value” will be less expensive but if the boat is considered totaled depreciation will be taken into consideration when determining the amount you will receive. Essentially the insurer will determine what your boat was worth at the time of the incident.
The liability coverage for recreational boating policies is known as protection and indemnity. This will typically include expenses for things like wreck removal, salvage fees or pollution damage.
