Valuation Clause

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • fine print

Definition of Valuation Clause

  1. A provision found in some insurance contracts that outlines the total dollar amount a policyholder will receive after an insured event. A valuation clause details the specific amount the insured is entitled to in the event of a loss as dictated by the policy. Assets can be valued by their actual cash value, replacement cost, stated amount or agreed value.

Related Terms and Acronyms

  • Total Loss (Ltot, TL) Acronym & Abbreviation,
    • When as asset is considered to be damaged beyond repair.
  • Surrender Rights Definition,
    • The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • Surrender Charge Definition,
    • A charge levied when a life insurance policyholder cancels his or her policy.
  • Waiver of Inventory Definition,
    • An option for an insurance company to choose not to inventory undamaged assets after a claim.
  • Insured Value Definition,
    • What an insurer will pay to replace an insured asset.
  • Fair Market Value (FMV) Acronym, Very Important,
    • The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
  • Watercraft Non-owned Insurance Definition,
    • Insurance that covers damages to watercraft not owned by the policyholder.
  • Ultimate Net Loss (UNL) Acronym,
    • The final sum that an insurer is required to pay a policyholder after they have filed a valid claim.
  • Qualifying Event Definition,
    • An event that qualifies for insurance coverage.
  • Extended Replacement Cost Definition,
    • A replacement cost for an asset that exceeds that of the actual cash value of the asset.
  • Adequacy of Coverage Definition,
    • An assessment of how well an entity's property and assets are insured against potential losses.
  • Valuation Definition,
    • The estimation of a property's price value through an appraisal.
    • The process of finding the worth of an asset or business.
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