VALUED POLICY Meaning and
Definition
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A valued policy refers to a specific type of insurance policy that guarantees a pre-established amount as the compensation in case of a total loss of the insured property or item. In this type of policy, the value of the insured property is predetermined and agreed upon by both the insurer and the policyholder when the insurance contract is being formed. This predetermined amount, known as the "agreed value" or "sum insured", is the maximum limit that the insurer will disburse in the event of a total loss, regardless of the property's actual worth at that time.
The purpose of a valued policy is to provide clarity and certainty to both the insurer and the policyholder regarding the amount that will be paid out in the event of a total loss. By determining the value in advance, disputes over the actual worth of the property at the time of loss can be avoided.
Valued policies are commonly used for insuring items with a high sentimental or collectors' value, such as jewelry, artwork, or vintage cars. Additionally, they are often utilized for insuring properties that may have difficulty in determining their true worth, such as historical buildings. It is important to note that valued policies typically have higher insurance premiums than policies that do not have a predetermined value, as they offer a guaranteed compensation amount.
Common Misspellings for VALUED POLICY
- calued policy
- balued policy
- galued policy
- falued policy
- vzlued policy
- vslued policy
- vwlued policy
- vqlued policy
- vakued policy
- vapued policy
- vaoued policy
- valyed policy
- valhed policy
- valjed policy
- valied policy
- val8ed policy
- val7ed policy
- valuwd policy
- valusd policy
- valudd policy
Similar spelling words for VALUED POLICY
- VALUED POLICY.,
- fallout bawls,
- Valued-policy law,
- fleet policy.
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