How are you paid in the event of a loss?

When discussing how you are paid, you need to distinguish between a total loss and a partial loss. Most of us are concerned how the boat insurance policy responds in the event of a total loss. The likelihood of a total loss is much less than a partial loss; therefore it is important to understand how the policy pays for both.

There are three different types of boat insurance policies -- agreed value, actual cash value and replacement cost. One of these three could be paid in the event of a total loss. In the event of a partial loss, you will need to know if the policy is paying replacement cost or depreciated value.

The two links below explain in detail how you are paid in the event of a total loss or a partial loss.

For complete details on partial loss click here.

For complete details on total loss click here.

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