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KembaraXtra- Financial Terms- Agreed-Value Policy refers to an insurance policy in which the amount payable under a claim is predetermined and clearly stated in the agreement.
Under this arrangement, the insurer and policyholder agree in advance on the value of the insured property or asset.
If a covered loss occurs, compensation is based on the agreed amount rather than the market value at the time of loss.
Agreed-value policies are commonly used for valuable assets such as classic cars, artwork, or specialized equipment.
This type of policy reduces disputes regarding valuation and provides greater certainty for both the insurer and the insured party.
Under this arrangement, the insurer and policyholder agree in advance on the value of the insured property or asset.
If a covered loss occurs, compensation is based on the agreed amount rather than the market value at the time of loss.
Agreed-value policies are commonly used for valuable assets such as classic cars, artwork, or specialized equipment.
This type of policy reduces disputes regarding valuation and provides greater certainty for both the insurer and the insured party.
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