Two basic types of boat insurance are what are called agreed value and actual cash value and they relate to whether or not the insurer considers depreciation when determining a boat’s replacement value. Agreed value coverage means that in the event of a total loss, the insurer will reimburse you for the agreed-upon value of the boat at the time the policy was purchased. This type of coverage typically comes with a higher premium but provides more certainty in terms of reimbursement. Actual cash value coverage, on the other hand, takes into account depreciation and pays you the current market value of the boat at the time of the loss. This type of coverage may have a lower premium but could result in a lower payout in case of a claim. It's important to consider the value and age of your boat when choosing between these coverage options.