I'm a little surprised that the insurer reduced coverage without notice. Perhaps there was a generic letter at some point discussing their policy on agreed value? In my experience, the insurer wants to see something that justifies whatever you think the value should be. Usually, they ask for a copy of the survey when you start coverage. In the extreme, if you insure a $10,000 boat for $100,000 and have a total loss, you won't get the $100,000 because you misrepresented the value when you set things up. If you want to insure for more, most companies, I believe, will accept some sort of demonstration of value, e.g. a new survey, statement from a dealer or broker, etc. It's odd that, historically, boats depreciate, and this year, shortages have led to increased values for used boats. If you're unhappy and want to change companies, chances are, the new company will want some verification of value if you want to insure for an amount that is out of line with say, "Blue Book" values.
I bought a boat last year and insured for the survey amount. This year, I see similar boats for sale for 30%+ more than I paid. If the boat is totaled, I'll get my money back, so I guess I'm "whole" but I won't be able to buy a similar boat with the settlement check.
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