Valued Clause

Published: | Updated: September 27, 2017

Definition - What does Valued Clause mean?

A valued clause is a clause in an insurance contract that states the exact amount that the insurer will pay for certain specific losses. In the event of a loss, items that have a defined value in a valuation clause will receive the stated compensation, regardless of their actual cash value at the time of the loss.

Insuranceopedia explains Valued Clause

Valued clauses are often used in property insurance. For example, a valued clause in a property insurance contract may state that the insurer will agree to reimburse any furniture losses at $700 each. Even if the value of the table or couch has gone up or down at the time of loss, the insurer will pay the amount stated in the valued clause. In this case, the insurer would pay $700 for each lost piece of furniture.

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