- 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
- Adequacy of Coverage — Definition,
- An assessment of how well an entity's property and assets are insured against potential losses.
- Extended Replacement Cost — Definition,
- A replacement cost for an asset that exceeds that of the actual cash value of the 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.
- Insured Value — Definition,
- What an insurer will pay to replace an insured asset.
- Qualifying Event — Definition,
- An event that qualifies for insurance coverage.
- Surrender Charge — Definition,
- A charge levied when a life insurance policyholder cancels his or her policy.
- Surrender Rights — Definition,
- The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
- 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 — Definition,
- The process of finding the worth of an asset or business.
- The estimation of a property's price value through an appraisal.
- Waiver of Inventory — Definition,
- An option for an insurance company to choose not to inventory undamaged assets after a claim.
- Watercraft Non-owned Insurance — Definition,
- Insurance that covers damages to watercraft not owned by the policyholder.