Contract under which the insurer agrees at inception to pay a stated sum in the event of a total loss without allowance for depreciation or appreciation. Partial losses are dealt with on an indemnity basis. Marine insurers issue valued policies on cargo (partial losses dealt with pro rata) and hulls (total loss only). Where a valued policy is not issued, e.g. open covers, a valuation clause is used.
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See: agreed value policy.
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See: Agreed amount clause.
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Property Insurance Policy which provides that a predetermined, fixed amount will be paid for total loss to property. Most fine arts and some inland marine policies are written on this basis.
Insurance Encyclopedia
Valued policy (Property Insurance)
A type of policy usually used for high-value items, like antiques or artwork. The policy has a stated amount to be paid should a total loss occur. This is done to prevent the need to determine the actual value of the property lost.
Valued Policy Law
A State statute that specifies that in the event of a total loss, the insured shall receive in payment the full amount of the policy, regardless of the principle of indemnity.
Valued policy law (Legal Terminology)
A law stating that an insurer must pay the face value of a policy upon the total loss of a building, regardless of the actual value of the building. The law intends to stop insurers from writing policies in excess of the value of the building so as to collect higher premiums.
Valued policy laws
Laws existing in some states that apply primarily to buildings. The laws differ but, in general, they state that in case of a total loss the amount of insurance is the agreed amount of loss.
Valued Policy(ies) for Fire Insurance
Valued Policy (ies) can be issued only for properties whose market value cannot be ascertained e.g., Curios, Works of Art, Manuscripts, Obsolete machine and the like subject to the valuation certificate being submitted and found acceptable by the insurers.
Values (Life Insurance)
A term used in life insurance for nonforfeiture values.
Values Policy
A form of marine reinsurance under which the reinsurer undertakes to pay a fixed amount if a ship in excess of a specified value becomes a total loss.