Agreed Value OR Guaranteed Value

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Agreed Value OR Guaranteed Value It is the amount your insurance company will reimburse you when the insured item is damaged or lost. Agreed value differs from other policies in that you are guaranteed to get the full amount agreed upon in your policy in the event of a loss. An agreed value is set at the beginning of each period of cover. Value doesn’t change during the period of cover. The agreed value is calculated based on the saleable value of the insured property. Note that the saleable value and replacement cost are not the same. Saleable value at a given point is calculated by deducting depreciation from replacement cost. Most at times we prefer the market value to the agreed Value. Generally speaking, marker value has the advantage of offering lower premiums for policy holders. For example the market value of your vehicle is likely to be less than any valuation of your vehicle you would agree with your insurance provider. The difference between agreed value and sum insured is that; Agreed Value means that your car is insured based on an amount that the insurer and you have agreed on. The sum insured amount offered to you is pre-calculated based on the property's model, year, and several other factors at the point of purchase. Note the sum assured may be lesser to the agreed value. The benefit of an agreed value is that you and your insurance provider come to an agreement on how much your property is worth, which is the maximum amount of money the insurer will pay after a covered loss. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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