Agreed value means that coverage is provided for a pre-determined amount settled upon by both the insured and the insurance company, and includes the watercraft, including motor(s), portable boating equipment, permanently attached equipment, marine electronics, and trailer (if trailer coverage is requested). In the event of a total loss, you would receive this specified agreed value, with no depreciation. Actual cash value is defined as replacement cost minus depreciation. In the event of a total loss, the amount you would receive accounts for depreciation in value.