Agreed-Value Policy

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Agreed-Value Policy

A property insurance policy stating that if an insured event occurs, the insurance company will pay either the amount to repair or replace the property or a set maximum, which is called the agreed amount. In general, a policyholder pays a higher premium for a higher agreed amount.
References in periodicals archive ?
Some owners prefer a guaranteed value or agreed value policy.
If you don't have an agreed value policy, you're going to have to accept a reasonable bid that won't really take account of the add-ons.
Travelers' antique and classic runabout program features an agreed value policy that is not based on the depreciated value of the vessel.
Insurance coverage for yachts (some cabin cruisers and houseboats fall under similar policies) is standard in some ways: they are best protected by an agreed value policy with physical damage protection for the hull, comprehensive coverage for other kinds of damage or loss, and liability coverage.