- The maximum amount an insurance company will pay if an insured asset is deemed a total loss. The asset's insured value can either be its replacement cost or its market value, depending on the insurance policy. Also known as "insurable value."
Related Terms and Acronyms
- Actual Cash Value (ACV) — Acronym,
- The replacement cost of an insured asset with depreciation accounted for.
- The amount of money that a broker or dealer has invested in the purchase and repair of a used vehicle.
- Face Value — Definition,
- The value of an asset, or the size of an insurance benefit.
- Insurable Value — Definition,
- The total amount that an asset can be insured for.
- Insurance (insur) — Abbreviation,
- An arrangement where one party provides financial protection to another party for specific damages or losses.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Replacement Cost — Definition,
- The amount one would have to pay to rebuild and refurnish with materials and items of similar value. The cost of replacing an asset with one of equal value without taking depreciation into account.
- Total Loss (TL, Ltot) — Acronym & Abbreviation,
- When as asset is considered to be damaged beyond repair.
- Ultimate Net Loss (UNL) — Acronym,
- The final sum that an insurer is required to pay a policyholder after they have filed a valid claim.
- Valuation Clause — Definition,
- A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.