Glossary

Agreed value

A value the insurer and policyholder settle on in advance, which the policy then pays in a total loss without a later dispute over what the item was worth.

Also called: agreed value coverage, agreed amount

Agreed value means that you and the insurer settle the value of an item or property when the policy is issued and write it down. If the item is a total loss, the insurer pays that amount, not a figure it works out after the fact. Depreciation, market swings and arguments about condition drop out of the settlement. Say a painting is accepted at $25,000 after an appraisal; if it is destroyed, the payment is $25,000.

You will see agreed value on scheduled jewelry, fine art, collector vehicles and some commercial property. In commercial property policies, an agreed value option suspends the coinsurance clause for the policy period once a signed statement of values is accepted. That is its second job: removing the penalty that comes from a limit below the required percentage.

Agreed value is only as good as the number you started with. Get a current appraisal, and update it as prices change; an agreed $25,000 painting worth $40,000 today pays $25,000. It also applies to total losses. A partial loss is generally paid at the cost to repair, up to the agreed amount. Ask the insurer which basis your schedule uses. stated value works differently and is worth comparing; see also scheduled personal property and insuring art, collectibles and wine.

Last reviewed October 10, 2026

In the index now

Related terms

Stated value The amount you declare for an item on a policy, which caps the payout but may be reduced if its actual worth or repair cost at the time of loss is lower. Scheduled personal property Individually listed valuables, such as jewelry, art and collectibles, insured for a stated amount each, with broader protection than standard contents coverage. Actual cash value What an insurer pays for damaged property: the cost to repair or replace it today, minus a deduction for age and wear, so less than a new-for-old payment. Coinsurance A policy clause that reduces a claim payment when the insurance carried falls below a required percentage of the property's value, usually 80% for homes. Replacement cost What it would cost to repair or rebuild with materials of like kind and quality at today's prices, with no deduction for age or wear. Policy limit The most an insurer will pay for a covered loss under one coverage, set separately for the house, other structures, belongings, living costs and liability.

Related guides

Insuring art, collectibles and wine Why a homeowners policy undercounts art, coins, cards and wine, how appraisals and valuation work, and what to ask before you schedule a collection. Scheduling jewelry, art and valuables How scheduled personal property coverage works: what a schedule lists, how items are valued and paid, whether a deductible applies, and when to update it. Special limits on jewelry, firearms, cash and collectibles A standard HO-3 caps jewelry theft at $1,500, firearms at $2,500 and cash at $200. See every sublimit, how a theft plays out, and how to close the gap. How to insure a tiny home A tiny home on a foundation can use a homeowners or dwelling policy. One on wheels is usually treated as an RV. How to tell which you have and what to ask.