Agreed Value Versus Market Value Florida Boat Insurance Policies

Agreed Value Versus Market Value Florida Boat Insurance Policies: Which Choice For You?

Boat Insurance Florida - Boat Insurance Miami - Marine Insurance Ft Lauderdale

Owning a boat in is exciting. It's the chance to spend quality time with friends and family and a terrific investment for enjoying the Florida sunshine. However, as is the case with automobiles, purchase a new boat and the moment you take it off the lot, it starts to depreciate.

The good news is, the right Florida boat insurance offers owners a choice when it comes to how they expect to be compensated in the event of a claim: Agreed Value or Market Value. While there are clear benefits and disadvantages to both, understanding the difference between the two can save you time, energy and most importantly, money. Here's a brief overview to help you make an informed decision when it's time to buy coverage with a Florida boat insurance policy that makes sense for you.

Agreed Value
Agreed Value is simply that- an understanding or agreement upfront between the insurer and the insured as to how a claim will be settled and the amount that will be recovered in the event of a loss. In most cases, owners looking to secure Florida boat insurance for a new vessel choose agreed value simply because it typically pays more. Unlike the current cash value of the boat, Agreed Value doesn't take depreciation into consideration at the time of a loss. Agreed Value is beneficial because it gives you the option of insuring your boat for exactly what it would cost to replace it with a brand new one in the event it is damaged.

Market or "Cash" Value With Market Value, sometimes called "Actual Value", your Florida boat insurance pays out the depreciated value of your boat at the time of the loss. It's understood that your boat has decreased in value over time and in the event something were to happen, you would get the fair cash value of your boat at the time of the loss. Obviously, older boats are worth less and therefore, the amount you recover for a loss is less as well. As a result, Market Value policies tend to be less expensive than Agreed Value policies. Generally, if the boat you are looking to insure is a few years old, it may be more cost effective to consider a Market Value policy.

How to Decide
Generally, owners looking to insure new vessels or boats that are relatively new choose Agreed Value over Market Value. As the boat depreciates and a loan is no longer outstanding, many owners choose to switch over to market value for a more cost effective alternative. To determine the value of your vessel, you can look in an appraisal guide, request help from an accredited marine survey or refer to a sales receipt if your boat is new. Remember, quality Florida boat insurance from BIA & Company can help protect you when the unexpected happens, whether you're in Miami, West Palm Beach, Ft. Lauderdale or the Florida Keys. Take the time to choose the right type of policy and get peace of mind and confidence that you'll be back in the water in no time.

If you're looking for Yacht Insurance, Triple and Quad Engine Boat Insurance Florida or Boat Insurance in Miami, Ft Lauderdale, Homestead, The Florida Keys, Key Largo, Coral Springs, Jupiter, St. Augustine, Kendall, South Miami, Coral Gables, West Palm Beach, Hollywood FL, Naples, Ft. Myers, Fort Pierce, Sarasota, St. Pete, Clearwater, Tampa, Cocoa Beach, Jacksonville, Orlando, Daytona Beach or Palm Coast, then contact BIA & Company for a free Yacht Insurance, Triple and Quad Engine Boat Insurance Florida or Boat Insurance quote today! BIA & Company offers the best rates on Boat Insurance, Triple and Quad Engine Boat Insurance Florida and Yacht Insurance in Miami, Ft Lauderdale, Homestead, The Florida Keys, Key Largo, Coral Springs, Jupiter, St. Augustine, Kendall, South Miami, Coral Gables, West Palm Beach, Hollywood FL, Naples, Ft. Myers, Fort Pierce, Sarasota, St. Pete, Clearwater, Tampa, Cocoa Beach, Jacksonville, Orlando, Daytona Beach and Palm Coast.

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