Agreed valuation is a term that is commonly used in the insurance industry. It refers to the value that is agreed upon by the insurer and the policyholder for a specific item or property that is being insured. This value is used to determine the amount of coverage that is provided by the insurance policy and the premium that the policyholder is required to pay. In this article, we will explore the definition and meaning of agreed valuation, its origin, associations, synonyms, antonyms, and example sentences.
Definitions
Agreed valuation is defined as the value of an item or property that is agreed upon by the insurer and the policyholder. This value is used to determine the amount of coverage that is provided by the insurance policy and the premium that the policyholder is required to pay. The agreed valuation is usually based on the current market value of the item or property, or its replacement cost.
Origin
The origin of agreed valuation can be traced back to the early days of the insurance industry. In the past, insurance policies were based on the principle of indemnity, which meant that the policyholder was only entitled to receive compensation for the actual loss that they had suffered. However, this led to disputes between insurers and policyholders over the value of the items or property that had been lost or damaged. To avoid these disputes, insurers began to use agreed valuation as a way of determining the value of the items or property that were being insured.
Meaning in different dictionaries
According to the Oxford English Dictionary, agreed valuation is defined as “the value of an item or property that is agreed upon by the insurer and the policyholder for the purposes of insurance”. The Merriam-Webster Dictionary defines it as “a valuation of property agreed upon by the parties to an insurance contract as the basis of indemnity in case of loss”.
Associations
Agreed valuation is closely associated with the insurance industry, particularly with regards to property and casualty insurance. It is also commonly used in the context of antique and classic car insurance, where the value of the vehicle is agreed upon by the insurer and the policyholder.
Synonyms
Synonyms of agreed valuation include agreed value, agreed upon value, and agreed price.
Antonyms
Antonyms of agreed valuation include disputed valuation and actual value.
The same root words
The same root words as agreed valuation include agree, valuation, and value.
Example Sentences
- The policyholder and the insurer agreed upon a valuation of $50,000 for the antique car.
- The agreed valuation for the property was based on its replacement cost.
- The policyholder was satisfied with the agreed upon value for the artwork that was being insured.
- The insurer and the policyholder were unable to reach an agreement on the valuation of the damaged property.
- The agreed price for the jewelry was higher than the policyholder had anticipated.