Valuation Clause

A provision in certain insurance policies that specifies the amount of money that the policy holder will receive from the insurer if an insured event occurs. The valuation clause stipulates a fixed amount of money that will be paid for insured property in the event of a loss. Several types of valuation clauses can be written, including replacement cost, actual cash value, stated amount and agreed value.

An insurance policy's valuation clause is important because it determines the dollar amount that will be paid in the event of a loss. Because different types of valuation clauses can be used, policyholders should review insurance policy details to determine if adequate coverage is in place.

Valuation clauses can be based on:

Replacement cost: the cost to repair or replace property using the same level of quality as in the original property.

Actual cash value: the cost of repairing or replacing the property, minus any depreciation.

Stated amount: the maximum value of an insured item.

Agreed value: a fair market value to which to insurer and insured agree.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Valuation Clause — Stipulates a fixed sum for insured property in the event of loss when included in a marine cargo insurance policy. Bloomberg Financial Dictionary …   Financial and business terms

  • Criticism of Facebook — Facebook s growth as an Internet social networking site has met criticism on a range of issues, including online privacy, child safety, and the inability to terminate accounts without first manually deleting the content. In 2008, many companies… …   Wikipedia

  • LOGIQUES NON CLASSIQUES — La logique formelle «classique» (cf. histoire de la LOGIQUE, LOGIQUE MATHÉMATIQUE, théorie de la DÉMONSTRATION) est une théorie de l’inférence valide qui ne prend pas en considération le contenu sémantique de l’argument. Elle est une logique… …   Encyclopédie Universelle

  • international trade — Introduction       economic transactions that are made between countries. Among the items commonly traded are consumer goods, such as television sets and clothing; capital goods, such as machinery; and raw materials and food. Other transactions… …   Universalium

  • Land value tax — Land value taxation (LVT) (or site value taxation) is an ad valorem tax where only the value of land itself is taxed. This ignores buildings, improvements, and personal property. Because of this, LVT is different from other property taxes which… …   Wikipedia

  • Probleme SAT — Problème SAT On nomme problème SAT un problème de décision visant à savoir s il existe une solution à une série d équations logiques données. En termes plus précis : une valuation sur un ensemble de variables propositionnelles[1] telle qu… …   Wikipédia en Français

  • SAT (problème) — Problème SAT On nomme problème SAT un problème de décision visant à savoir s il existe une solution à une série d équations logiques données. En termes plus précis : une valuation sur un ensemble de variables propositionnelles[1] telle qu… …   Wikipédia en Français

  • Sat4j — Problème SAT On nomme problème SAT un problème de décision visant à savoir s il existe une solution à une série d équations logiques données. En termes plus précis : une valuation sur un ensemble de variables propositionnelles[1] telle qu… …   Wikipédia en Français

  • Royalties — Not to be confused with Royal family. Royalty cheque. Royalties (sometimes, running royalties, or private sector taxes) are usage based payments made by one party (the licensee ) to another (the licensor ) for the right to ongoing use of an asset …   Wikipedia

  • California Proposition 13 (1978) — Elections in California …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.