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What is the difference between Actual Cash Value and Agreed Value?

April 26, 2017actual agreed cash value

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What is the difference between Actual Cash Value and Agreed Value?

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A. When a claim is settled on an Actual Cash Value basis this means that the Insurance Company will apply full deduction for depreciation. Agreed Value means the Insurance Company will pay you the agreed upon insured value should you suffer a total loss to your vessel. No depreciation is taken.