valued policy

valued policy definition - business

valued policy

An insurance contract in which the insurer agrees to pay the limit of the liability in the event of a total loss. For example, the home of an insured owner burns down and would cost $225,000 to rebuild. A valued policy with a $275,000 limit would pay the homeowner the policy limit of $275,000.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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