When you take out or renew your insurance policy, you agree on a value your boat, personal watercraft, classic car or other specified item is worth.
If we agree your boat is worth $10,000 and it is declared a total loss after an accident or theft, you should be paid $10,000. There's no complicated formula involving the effects of age, wear and tear that will make a total loss payment less than the agreed value. It's simple.
Insurance terms to know - Agreed Value
Written by Sullivan Insurance Agency on Feb 27, 2015