Insurance glossary · Home, cars and valuables
agreed value.
Agreed value means you and the insurer settle an item’s value up front, so a total loss pays that amount instead of a depreciated market price. Common for collector cars and art.
How does an agreed value policy pay a total loss?
It pays the amount you and the insurer agreed on when the policy was written, without arguing about depreciation or market value at the time of the loss. Partial losses are usually paid at the cost of repair, up to that amount.
What’s the difference between agreed value and stated value?
With agreed value, the insurer pays the agreed amount in a total loss. With stated value, the amount you state is usually only a cap, and the insurer can pay less, often the lesser of the stated amount or actual cash value. The names sound alike; the outcome isn’t.
What is agreed value used for?
Collector and classic cars, fine art, jewelry and other collectibles, where market value is hard to pin down and depreciation doesn’t reflect what the item is worth. In business property, an agreed value endorsement is also used to suspend coinsurance.
How is the agreed value set?
Usually from an appraisal, sales records or a specialist’s valuation, reviewed by the insurer. The amount is fixed for the policy period and can be updated at renewal.
Does a collector car policy have conditions?
Often yes: limits on annual mileage or use, secure storage, and a separate everyday vehicle. They let the insurer offer agreed value at a lower premium, so it’s worth reading them before relying on the coverage.
What does agreed value mean on a commercial property policy?
An endorsement that suspends the coinsurance condition for the policy period once you submit a statement of values the insurer accepts. It doesn’t guarantee a payout amount; it removes the underinsurance penalty.
Does agreed value work differently by state?
The terms come mostly from the policy, but some states have rules on how auto total losses or stated amounts are settled. The notes below cover Riza’s licensed states.
in the states where Riza is licensed.
Riza is a licensed insurance agency in New York, Colorado, Texas, Florida, Massachusetts, Arizona, Nevada, North Carolina, New Jersey and Georgia. Notes below cite the law they come from. Detailed write-ups cover Arizona, Nevada, Texas, North Carolina and New York. One-line notes for other licensed states appear with them when this term has one.
- ArizonaArizona has no rule on agreed or stated value policies that we found. Its auto total loss rule applies when a policy settles at actual cash value, requiring a comparable replacement vehicle or cash for one.Ariz. Admin. Code R20-6-801contractors in Arizona →
- NevadaNevada has no rule on agreed or stated value policies that we found. Its auto total loss rule sets how insurers settle at the value of a comparable vehicle, plus taxes and fees.NAC ch. 686A (686A.680)contractors in Nevada →
- TexasTexas lets an insurer covering jewelry under a home policy choose between paying the item’s stated value or the cost to replace it, so a stated value isn’t guaranteed. A Texas fire policy pays its full amount on a total fire loss of real property.Tex. Ins. Code § 2002.004 · Tex. Ins. Code § 862.053contractors in Texas →
- North CarolinaNorth Carolina has no rule on agreed or stated value policies that we found. Its auto total loss rule sets when a vehicle must be declared a total loss and requires taxes and fees to be included.11 NCAC 04 .0418contractors in North Carolina →
- New YorkNew York’s auto claims regulation allows physical damage policies that pay a stated dollar amount on a total loss, as well as policies that pay actual cash value.NY DFS OGC Opinion 01-03-11contractors in New York →
by household.
- CollectorsCars, art and collectibles are usually insured on agreed value forms built for collections.
- FamiliesClassic cars and heirlooms passed through a family benefit from agreed values that keep up with the market.
- IndividualsA first collector car is often the first time agreed value matters.
where you’ll see it.
- Collector car policies“Agreed value” next to each vehicle, with usage conditions.
- Fine art and jewelry schedulesScheduled items with their agreed values from appraisals.
- Commercial property endorsementsAn “agreed value” endorsement suspending coinsurance until an expiration date.
agree on the value before the loss.
Riza places collector cars, art and valuables on agreed value terms with current appraisals, and uses agreed value endorsements on business property to take coinsurance off the table.
Get a quoterelated terms.
Coverage it touches: Car and collector car · Art, jewelry and valuables