Agreed Value

With agreed value, you and the insurer agree on the insured amount at the start of the policy. If the craft is written off or stolen, you receive that fixed amount — no depreciation deducted. With market value, the insurer pays what the craft is worth at the time of the claim, which can be significantly less than what you paid, particularly in the first few years. Agreed value is generally recommended for newer or higher-value craft.

Agreed value policies typically carry a slightly higher premium because the insurer is accepting a fixed liability rather than a variable one. The difference in premium is usually modest, and for most owners the additional certainty at claim time is worth the small extra cost. A specialist broker can compare agreed value and market value options for your specific craft so you can make an informed decision.

You and the insurer agree on the value before the policy is issued. For newer craft, this is typically based on the purchase price or current replacement cost. For older or unusual craft, a formal valuation may be required. The agreed value is reviewed at renewal and can be adjusted up or down to reflect changes in the market. A broker can guide you on what figure is reasonable and what evidence an underwriter may need.

No — agreed value is relevant to total loss situations only. If your craft is partially damaged, the insurer pays the cost of repairs, not the full agreed sum insured. Agreed value protection means that if the craft is beyond economic repair or is stolen and not recovered, you receive the full pre-agreed amount without any depreciation deduction.

Market value cover can be appropriate for older or lower-value craft where the premium difference makes agreed value less cost-effective. If you purchased a second-hand jet ski at a price that already reflects significant depreciation, market value cover may deliver a similar outcome at lower cost. A specialist broker can help you model the trade-off for your specific craft and situation.