In the event of the total loss of a boat covered ûunder an Actual Cash Value policy, the ûcompany will only pay the boat's depreciated ûor market value. However, the market has no ûeffect on a policy with an Agreed Hull Value.

Most prospective boat buyers carefully evaluate the construction techniques of builders before making a purchase. Warranties come under close scrutiny, too. Negotiations of purchase price and trade-in values are time consuming, and most buyers shop for the lowest interest rates.

If a bank requires insurance to protect a loan, however, most buyers purchase coverage from the same agent or company that provides other personal coverages, or from someone recommended by the dealer. Buying an insurance policy for your boat can become almost an afterthought. It shouldn’t be. …