valued policy definition by American Heritage Dictionary
The American Heritage® Dictionary of the English Language, 4th edition Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
An insurance policy requiring the insurer to pay the insured the full face value of the policy in the event of total loss, regardless of the actual value of the lost property.
valued policy - Business Definition
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.