When insuring your boat in the El Centro, CA area, it’s essential to understand the different policy options available. Two common types of boat insurance policies are agreed value and actual cash value. Each policy type offers different benefits to consider.
Agreed Value Policy
An agreed value policy establishes the boat’s value upfront between the owner and the insurance provider. In the event of a total loss or irreparable damage, the insurer agrees to pay the predetermined amount. This value is typically based on factors such as the boat’s age, condition, and market value when the policy is written.
Benefits of Agreed Value Policies
Agreed value policies offer several advantages. First, they provide a clear and settled value for the boat, eliminating uncertainties and potential disputes during the claims process. Second, owners of older or unique boats benefit from the financial certainty provided by agreed-value policies. The predetermined value ensures they are adequately compensated, regardless of market fluctuations.
Actual Cash Value Policy
An actual cash value policy determines the payout based on the boat’s depreciated value at the time of the loss or damage. This value considers age, wear and tear, and market value.
Benefits of Actual Cash Value Policies
Actual cash value policies offer lower premiums compared to agreed value policies. The lower premiums are attributed to the fact that the insurer pays out based on the depreciated value of the boat. This makes actual cash value policies more suitable for older boats with a lower market value.
How Armorcrest Insurance Services Can Help You
At Armorcrest Insurance Services, we can answer all your questions concerning boat insurance coverage and discuss if the agreed value or the actual cash value policy is your best choice. We assist the El Centro, CA region. Contact us today.