Understanding ACV (Actual Cash Value) vs. Agreed Value Coverage

When it comes to insuring your boat, one of the most important distinctions whether your coverage is written on an Actual Cash Value (ACV) vs. Agreed Value basis.

An ACV policy factors in depreciation at the time of a loss. In the event of a total loss, the payout reflects your boat’s current market

value - not what you originally paid - often leaving a gap between the settlement and replacement cost.

An Agreed Value policy, on the other hand, locks in a pre-determined value upfront. If your vessel is deemed a total loss, that full agreed amount is paid - no depreciation applied.

For seasoned boaters, Agreed Value coverage offers greater predictability and protection, especially for well-maintained or higher-value vessels where market comps can fluctuate.

If you’d like to explore your options or review your current policy, feel free to reach out to Sunset. Our team of specialists is always happy to help make sure you’re properly protected on the water.