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I have been asked more than once about the differences in Marine Boat Insurance.

From the CG and B group Inc.
Contact Janet Cochrane at 1-800-267-6670 The CG and B Group INC Markham Ontario

Actual Cash Value - would normally apply to older vessels. Obviously vessel values reduce the older a vessel gets, such as you would have for automobiles. Of course there are always exceptions to that, for example some vessels may be refurbished / refitted, which could enhance the value. Vessel owners themselves realize that the values reduce over the years, and request reductions in the values accordingly. So basically it would be Fair market value of the property.

Agreed Value or Declared Value - that is the value agreed between the insured and the insurer, at time of arranging insurance on the vessel. Therefore in the event of a total loss, the insurers would pay the amount of insurance declared to them. Insurers would pay the declared value if the reasonable expense of recovering and repairing the vessel equals or exceeds the amount of insurance.

From Robertson and Robertson Yacht Insurance LTD.
Contact Andrew Robertson 1-800-661-7211 Robertson and Robertson Toronto Ontario

What is the difference between Agreed Value and Actual Cash Value policies?
The primary difference is how claims are settled following a loss. With Agreed Value coverage, the amount paid following a total loss is the amount shown on your policy - without depreciation. Partial loss claims are settled new-for-old without depreciation.
With Actual Cash Value, depreciation is applied on all claims. The amount you receive is the current market value of the boat or damaged equipment at the time of the loss.