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.

View complete details on partial loss.

View complete details on total loss.

Review our in-depth Boat Insurance Guide.

See our side by side comparison of the programs represented by United Marine.