An agreed value, sometimes called a guaranteed value, is the amount your insurer will reimburse you when an item is damaged or lost. When you have an agreed value policy, you are guaranteed to receive the full amount agreed upon in your policy in the event of a loss.
Most insurers will require you to agree on the value of an item before you begin your policy. To provide insurance companies with proof of value, your items will be appraised. Be sure that your clause is easily accessible and clearly worded. If you choose this insurance type, the insured value of your property won't depreciate during the term of your policy, but you will need an appraisal at the beginning of each term for renewal.
You may want to consider stated value insurance if you wish to keep your premiums low. But if you're concerned about protecting your property from depreciation and avoiding a substantial loss, agreed value insurance is what you need.
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