YOU ASK:

What is the definition of Valued Policies?

WE ANSWER:

Valued Policies are policies, which pay their benefits or the claims based on the face value specified in the policy, instead of the property's actual value. Claims payments are not in any way related to the extent of the damage or loss incurred.

This is more for life insurance policies, but valued policies can still be bought for vehicles, homes and other properties. An independent appraiser is hired to determine the fair value of the property being insured.

The premiums of a valued policy will depend on the face amount, the kind of risk being insured, and may also consider the geographic location of the property.

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