Agreed Value

Insurance is all about protection and peace of mind. When you insure something valuable, you want to be sure that you'll receive fair compensation if the unexpected happens. 

That's where "Agreed Value" comes into play. 

In this article, we simplify the concept of Agreed Value, explaining how it works, its features and benefits, and the superior protection it can provide you.

What’s the Definition of Agreed Value?

At its core, Agreed Value is about certainty and transparency. 

When you choose Agreed Value insurance, you and your insurer agree on the exact value of your asset at the policy's inception and renewal. 

This agreed-upon value becomes the basis for coverage, regardless of fluctuations in the market or the asset's condition over time. 

In simple terms, it's the pre-set value determined when you agree to the policy.

Agreed Value vs. ACV & Replacement Cost

Agreed Value insurance offers certainty with a pre-set asset value, ensuring consistent payouts. 

In contrast, Actual Cash Value (ACV) considers market value and depreciation, leading to potential disputes.

Replacement Cost aims for brand-new replacements but can come with higher premiums. 

Agreed Value provides stability, while ACV fluctuates in claim decisions, and Replacement Cost may be costly. 

Characteristics of Agreed Value Insurance

One of the defining characteristics of Agreed Value insurance is its stability. 

Unlike ACV, where the value of your asset can decrease over time due to depreciation, Agreed Value maintains a predetermined value throughout the policy term. 

This stability offers you a clear understanding of your coverage, ensuring that you won't be caught off guard by a lower payout.

The premium for an agreed-value policy is typically calculated based on the agreed-upon value, providing a predictable cost structure. This transparency in premium calculation simplifies financial planning for policyholders.

Agreed Value insurance often has specific limits for coverage, emphasising the importance of accurately valuing your asset at the policy's initiation.

Advantages of Agreed Value Insurance

• Protection for High-Value Assets: Agreed Value insurance is particularly advantageous for high-value assets like jewellery, engagement rings, and luxury watches. It ensures that these valuable possessions are adequately protected.
  
  
• Predictable Payouts: Policyholders receive payouts based on the agreed-upon value, providing predictability and eliminating disputes over asset worth.
  
  
• Stability in Coverage: Agreed Value maintains coverage at the agreed-upon value, offering stability and consistent protection for your valuable assets.
  
  
• Comprehensive Protection: Agreed Value as a part of a comprehensive protection policy, ensures that in the event of loss, damage, or theft, your high-value assets are fully covered. This comprehensive coverage extends to all situations, providing peace of mind for policyholders.
  
  
• Customised Policies: Agreed Value insurance allows for customised policies tailored to the specific value of your assets. This ensures you're not overpaying for coverage while still receiving the protection you need.

Common Applications of Agreed Value Insurance

Agreed Value insurance is perfectly suited to the following high-value items: 

Jewellery

Agreed Value is a valuable choice when insuring your jewellery, eliminating uncertainty in case of loss or damage. It protects jewellery of all kinds, offering certainty and peace of mind for jewellery enthusiasts and those looking to preserve the value of their sentimental and high-value pieces.

Engagement Rings

Agreed Value provides comprehensive coverage for your engagement ring insurance, ensuring it's protected at an agreed-upon value. This coverage with JewelCover extends to all scenarios, from accidental damage to loss or theft, allowing you to repair or replace your precious symbol of love with confidence.

Luxury Watches

For collectors and enthusiasts, Agreed Value offers specialised insurance for luxury watches, guaranteeing the full pre-set worth in the event of loss, damage, or theft. It eliminates discrepancies in assessing the watch's worth, preserving the investment value of your watch collection.

How to Obtain Agreed Value Coverage

To obtain Agreed Value insurance, follow these 3 simple steps:

• Accurate Appraisal: Ensure an accurate appraisal of your asset's value. This is crucial, as the agreed-upon value will serve as the basis for coverage.
  
  
• Policy Initiation: Contact a trusted and highly-rated insurance provider, like JewelCover, to discuss your needs. Be sure to explore your policy and obtain support and advice tailored to your needs. 
  
  
• Documentation: Provide any necessary documentation, such as purchase receipts, appraisals, or photographs, as required by your insurance provider.

Agreed Value - Frequently Asked Questions

How does Agreed Value work? 

Agreed Value insurance works by setting a specific value for your assets, like jewellery, engagement rings, or luxury watches, which is agreed upon between you and the insurance provider. In case of a loss or damage, you'll receive a payout based on this agreed-upon value, providing you with predictable and full compensation for your valuable items.

Is it better to get Agreed Value or Market Value? 

Whether to choose Agreed Value or Market Value insurance depends on your assets' uniqueness and value. Agreed Value is often better for high-value and unique possessions like jewellery and luxury watches. It ensures you'll receive a payout based on the agreed value, avoiding potential undervaluation. Market Value is suitable for common items whose worth can fluctuate over time, like cars or electronics.

How do you determine Agreed Value? 

Agreed Value is determined through discussions between you and your insurance provider. You both agree on the value that your assets, such as jewellery, engagement rings, or luxury watches, hold. This value is usually based on appraisals, receipts, or expert assessments. It's important to provide accurate information to ensure your assets are adequately protected.

Safeguard Your Valuables With Agreed Value From JewelCover

In the insurance realm, Agreed Value provides certainty and protection. It ensures your valuable assets, like jewellery, engagement rings, and luxury watches, are covered at a set value, removing uncertainty and disputes.

At JewelCover, we prioritise your peace of mind. With our Agreed Value policy, you pay premiums based on an agreed-insured value, and approved claims are paid at that value, never a variable amount.

When you opt for JewelCover, you even get an extra 25% cover on top of the agreed value, ensuring your valuable assets are safeguarded against fluctuations in the jewellery industry.

So, choose the well-informed path for your prized possessions – Agreed Value Insurance from JewelCover. Start your journey today with a FREE online quote.