Agreed value or actual cash value: which number would you be paid?
Hull coverage decides what happens to the boat herself. Three things shape it: the value she is written on, the deductibles, and the conditions beside them. Liability to other people is a separate section.
Liability to other people: Boat Liability. What a yacht policy covers as a whole: Yacht Insurance.
Agreed value and actual cash value settle a loss differently.
Policies settle a hull loss on a stated basis, and the two you will hear most are agreed value and actual cash value. With actual cash value, depreciation is taken into account; Florida's Department of Financial Services explains the same distinction for property, between replacement cost and depreciated actual cash value, and marine wording varies. There is no universal settlement rule; the wording decides.
| Question to ask | Why it matters |
|---|---|
| Which basis does my policy use for a total loss? | It sets the number you'd be paid. |
| Does a partial loss settle on the same basis? | Policies can treat partial and total losses differently. |
| How was the insured value set, and when? | A value set years ago may no longer match the boat. |
| Does the basis change for older equipment or engines? | Ask, rather than assume. |
The deductible and the conditions are part of the number.
We do not suggest a typical deductible; put each one as a question to your own policy.
- Fixed or percentage? Is the hull deductible a fixed amount or a percentage of value?
- Separate deductibles. Is there a separate deductible for named storms, machinery or theft?
- Exclusions. Which exclusions apply to the hull: negligence, business use, unapproved operators, maintenance?
- Warranties and conditions. Which must you meet for the cover to respond?
- Gross tonnage. It measures volume, not length or weight; give the documented figure.
Tenders and equipment listed separately are a Yacht Insurance question; where paid use begins is on Personal Use Coverage.
Does boat insurance cover hurricane damage?
It depends on your policy's storm terms. Compare how each proposal includes, excludes or conditions wind and storm damage; a lower price from narrower storm cover is a trade-off to see clearly, not a saving. Questions to ask before the season:
- Named-storm deductible. Is there a separate one, and how is it calculated?
- Storm plan. Does the policy expect a written one?
- Location. Where must the boat be kept, or moved to, during the season?
- Alternate skipper. Who is the alternate skipper or contact if you are away?
- Marina agreement. What does it require before a storm?
- Afterwards. Who can reach the boat, and how?
If the boat is already damaged, report the loss under your policy's own claim instructions first. Homes and flood are separate policies, on Property.
Rise and the hull.
Roberto Guerrero, President and Principal Agent of Rise Specialized Insurance in Saint Petersburg, puts the valuation, deductible and storm questions to each proposal side by side, so the number you would be paid is known before it is needed.
Speak with Roberto.
Roberto Guerrero · President and Principal Agent · Licensed agent