Should You Get Agreed Value or Actual Cash Value Boat Coverage?

March 17, 2025

Which one should you choose when you are buying boat insurance in British Columbia? Agreed value or actual cash value (ACV) coverage for your boat?

If your B.C. boat is a total loss, you’ll need to understand how your boat insurance will compensate you.

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You’ll need to choose between agreed value and actual cash value coverage for your B.C. boat insurance

If you choose an agreed value policy, your boat insurance provider agrees to honour the value of the boat at the time your boat policy was written. For example, you buy a new boat for $30,000 and you insure it for that value. That is the amount you will receive if you have a total loss.

There is usually a time limit for agreed value coverage. A boat might have agreed value coverage until it’s a certain age, for example.

If you choose an actual cash value (ACV) policy as part of your B.C. boat insurance will pay you the replacement cost of the boat in the event of a loss.

Actual cash coverage covers you for the value of your boat at the time of loss, and less depreciation.

Here are the pros and cons of agreed value vs actual cash value for your British Columbia boat insurance coverage

Pros of agreed value coverage:

• An agreed value policy can be reassuring because the limit that is on your boat insurance policy is the amount that you are insured for after a total loss.
• Usually, the value that is agreed upon will be the purchase price of your boat.
• The only amount you pay is your deductible.

Cons of agreed value coverage:

• An agreed value policy for your boat is more expensive than an actual cash value policy.
• It may have a specific age limit for your boat.
• Agreed value coverage isn’t usually available for sport and high-performance boats.

Pros of actual cash value:

• This kind of coverage is cheaper than agreed value coverage.
• As your boat gets older, your boat insurance provider may insist on an actual cash value policy and savings will come with that.

Cons of actual cash value:

• It only pays up to the value of the boat at the time the boat was a total loss.
• Actual cash value coverage may not offer enough coverage if your personal belongings are stolen or damaged in your boat
• If you purchase new items to replace the ones you've lost, you'll pay the difference between the insurance payout and the cost of a brand new item.

You can also add a guaranteed replacement value endorsement to your boat insurance policy. Ask about any conditions that may apply.

Speak to a Western Coast Insurance boat expert about agreed value coverage versus actual cash value coverage for your boat.

Boat insurance protects your investment in your boat. Marinas in British Columbia and lenders typically require boat insurance. It’s recommended that you have $3 million in liability coverage for your boat.

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