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. This means if something happens to the car, the insurer pays the agreed value to the insured, which may or may not include a deductible.
A typical car insurance policy would only pay the RV'S depreciated value, but an RV Agreed Value policy from Progressive would pay the amount that your customer and the insurance company agreed the RV was worth when they bought the policy, regardless of the RV's value at the time of the loss.
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.