In this policy the value of the subject-matter is agreed upon at the time of taking up the policy.

What is valued policy in fire insurance. The valued policy is beneficial to the insured because he is relieved of proving the value of the property at the time of loss by searching for invoices and receipts. In the case of the reinstatement value clause the insurance company reinstates the damaged property or asset by paying its replacement value as the claim amount to the policyholder. It does not apply to personal property detached or appurtenant structures.

In case of a loss there will no longer an evaluation conducted. Valued policy covers the risk of fire in respect of these items. The insured may collect the full amount stated in the policy or the full amount for which the insurance company collects the premium without considering depreciation.

At the initiation of the policy the value of a particular property is determined. It covers losses arising from many kinds of risks such as fire theft burglary third party risks etc. Under Valued Policy the value of a subject matter is decided upon which the insurer pays if it is destroyed or damaged.

Many insurance companies offer valued policies to their. The classification excludes floods and earthquakes. Fire insurance is property insurance that covers damage and losses caused by fire.

A valued policy is a type of insurance policy in which the full face value of the policy is paid out in the event of a total loss regardless as to the actual value of the property covered by the policy. In a valued policy the valuation of the subject matter of insurance pre-determined. What is valued policy in fire insurance.

Valued policy law VPL is a legal statute that requires insurance companies to pay the full value of a policy to the insured in the event of a total loss. On the premise of the value of the property the insurance of the policy is decided wherein the insurer will pay the value in the case of destruction of property by fire. Fire insurance may be capped at a rate that is less than the cost of the losses accrued necessitating a separate fire insurance policy.