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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Valuation Clause


Synonyms:fine print
Filed Under: insurance, legal-contracts
Tags: clause, contract, insurance, legal
 

Definition of valuation clause

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:

  • extended replacement cost   A replacement cost for an asset that exceeds that of the actual cash value of the asset.
  • fair market value (FMV)   The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
  • insured value   What an insurer will pay to replace an insured asset.
  • qualifying event   An event that qualifies for insurance coverage.
  • surrender charge   A charge levied when a life insurance policyholder cancels his or her policy.
  • surrender rights   The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • ultimate net loss (UNL)   The final sum that an insurer is required to pay a policyholder after they have filed a valid claim.
  • valuation   The estimation of a property's price value through an appraisal.
  • waiver of inventory   An option for an insurance company to choose not to inventory undamaged assets after a claim.
  • watercraft non-owned insurance   Insurance that covers damages to watercraft not owned by the policyholder.

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