Definition, Meaning & Synonyms

valued-policy

Noun

/ˈvæljuːd ˈpɒlɪsi/

Definition

A valued policy is an insurance contract that pays a predetermined amount in the event of a covered loss.

Examples

The homeowner chose a valued policy to guarantee compensation after a total loss.
With a valued policy, you can be confident you’ll receive the agreed amount regardless of the item’s current market value.

Meaning

This type of policy establishes the value of an insured item or property, ensuring that the insured receives a specific amount rather than actual cash value when a claim is made.