Agreed Value: means that in the event of a total loss, no depreciation will be applied to the amount listed on your policy. In the event of any partial losses (repairs) the insurance company agrees to pay to repair your watercraft with brand new parts, not exceeding the limit of your insurance. Actual Cash Value: means that depreciation is applied to all claims (partial or total), so the amount you receive will be reflective of current market value of the whole watercraft or the part that was damaged.