The agreed value allows you to receive an indemnity for your damage boat or watercraft according to an amount that was predetermined between your insurer and you. The age of the watercraft and the type under which it falls is taken into account to establish this amount.
For example
You buy a 2014 Seary Sundancer and add the “Replacement cost” endorsement to your policy. At that time, your broker and you had agreed that your boat is worth $130,000. Three years later, you hit a rock while you are sailing and your boat is declared a total loss. The insurance that you had purchased three years ago pays out an indemnity of $130,000, which allows you to buy a new boat.