Agreed Value

With an agreed-value policy, the insurer and boat owner establish a covered value in advance, typically using details such as the boat’s make, model, year, condition, equipment, and supporting documentation. The agreed amount is stated in the policy and is different from a value calculated only after a loss based on depreciation or market estimates.

A boat can be difficult to value after a serious loss, especially when it has upgrades, custom equipment, or a limited sales history. Agreeing on a value before a claim can make the total-loss settlement basis clearer. It may also help Long Island owners insure boats used on the Sound, in bays, or along the Atlantic coast for an amount that reflects the specific vessel rather than relying solely on a general market estimate.

At application or renewal, the insurer reviews the boat information and sets an agreed amount with the owner. If the boat is damaged but repairable, the policy’s repair and settlement provisions apply; the agreed amount does not automatically determine every partial-loss payment. If the boat is a covered total loss, payment is generally based on the agreed value, less any applicable deductible and subject to policy exclusions, conditions, and limits.

Boat values and equipment can change over time. Owners in Long Island should review the insured amount after significant upgrades, a purchase or sale, or a change in the vessel’s condition. Keep receipts, photographs, maintenance records, and details of installed equipment available to support the value discussion. Also confirm whether trailers, personal effects, tenders, and specialized equipment are included or require separate coverage.

Agreed value is not necessarily the same as the boat’s resale price at the time of loss. A market-value or actual-cash-value approach may account for depreciation when settling a claim, while agreed value sets a figure in advance for the covered vessel. Policy wording varies by insurer, so compare how each option handles total losses, partial damage, deductibles, and equipment before choosing coverage.