Glossary

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.

Also called: stated amount, declared value, stated amount coverage

Stated value is the amount you tell the insurer an item is worth, and it becomes the most the policy will pay for that item. It is a ceiling, not a promise. At the time of a loss the insurer can pay the lesser of the stated amount, the item's actual cash value, or the cost to repair or replace it.

Say you insure a collector car, a watch or a piece of art for a stated $50,000. If it is destroyed when the market value has slid to $42,000, a stated value policy typically pays $42,000. If the market has climbed to $60,000, it pays $50,000, and you absorb the difference. Under an agreed value policy, a total loss would pay $50,000 either way, because the number was settled in advance.

That distinction is easy to miss because the declarations page or schedule may simply show an amount. Ask directly whether your coverage is written on an agreed value, stated value, replacement cost or actual cash value basis, and have the answer in writing. If you want certainty, ask for agreed value or an appraisal-backed schedule. Review stated amounts regularly. See scheduled personal property for how listed items work and insuring art, collectibles and wine for the high-value end.

Last reviewed October 10, 2026

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Related terms

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. 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. 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.