Are you in search of an insurance policy that covers valuable assets? Consider getting agreed-value insurance. Recognizing the importance of protecting high-end assets, agreed value insurance is a type of coverage that enables individuals to maintain the value of the insured item in case of unforeseen events. Items insured by this policy are vehicles and other valuable properties.
For several years, individuals and business owners have enjoyed loads of benefits attached to having agreed-value insurance. Thus, it is one of the best-sought-after policies in the landscape of insurance.
What is Agreed Value Insurance?
Agreed value insurance is a substitute for actual cash value or replacement cost coverage. It is a type of insurance where an individual and the insurance provider agree on the value of the item upfront. Thus establishing certainty that there’s an insurance claim.
How Does Agreed Value Insurance Work?
Typically, agreed value insurance is actualized when you and your insurance provider come to terms with how much your vehicle is worth. Those who have a claim are entitled to either the agreed-upon value or the full amount required to cover the cost associated with fixing the car.
Individuals who intend to obtain an agreed-upon value policy for their assets are required to provide supporting documents that prove the value of the asset or item they want to insure.
With its immaculate coverage options, agreed value insurance offers financial security and peace of mind in the event of a loss or damage. The insurance company will settle the cost of items or assets that are stolen, damaged, or destroyed, excluding policy provisions and applicable deductibles.
Who Should Consider Agreed Value Insurance?
Anyone can obtain agreed-value coverage. Generally, this type of insurance is tailored to meet the needs of individuals or businesses that own high-value assets and valuables that can incur significant damage or loss that may be difficult to replace. If you fall into any of the categories highlighted below, you should consider getting agreed-value coverage.
- Classic car owners: Individuals who own a classic or antique car whose value has significantly appreciated over time should not hesitate to get agreed value coverage.
- Business owners with specialized equipment: Businesses with high-end and standard equipment should also consider getting this insurance.
- Collectors of valuable items: If you collect valuable items like jewelry, antiques, or artwork, you can explore and enjoy the benefits that come with acquiring agreed value coverage.
- High-end homeowners: If you have luxurious items and home equipment with distinctive features and historical significance, we highly recommend agreed value coverage.
- Boat and yacht owners
Summarily, agreed value coverage is beneficial to anyone who owns assets of substantial value. This insurance provides financial security and peace of mind through the coverage of the value of assets when an unforeseen event occurs.
Pros
- The policy doesn’t depreciate.
- It has the potential for a higher coverage amount.
- It provides substantial coverage for classic, antique, and customized vehicles.
- It offers financial security and peace of mind.
Cons
- It is not offered by all insurance companies.
- Premiums are usually higher.
- If you drive your vehicle recently rather than store it, it will lead to expensive premiums.
- The insurance provider might specify storage rules.
Who is Eligible for Agreed Value Coverage?
Virtually anyone is eligible to purchase agreed value coverage. If you’re a classic car owner, a business owner with specialized equipment, or a collector of valuable assets, you can be eligible for agreed value insurance.
While there’s no limitation on who can get agreed value insurance, not all insurance companies write policies for agreed value insurance. Few insurance providers partner with a specialty insurer that writes agreed value insurance policies. If you’re considering getting this policy, it is important to conduct research and compare the policies of some insurance providers to ascertain whether or not you can get this insurance policy from them.
Upon getting a good insurance provider that writes agreed value policies, you can request a quote to check what the premium is like and if you qualify for their specified policy.
How to Get Agreed Value Coverage
Getting an agreed value coverage is relatively easy! If your vehicle meets the same requirements as antique or classic cars and is in good condition, you’re one step closer to getting this insurance. Individuals who intend to get agreed value coverage will be asked to provide photos that showcase the validity of the condition of the vehicle or property.
Highlighted below are steps on how to get agreed value policy:
- Research insurance companies or providers that offer agreed value insurance.
- Request a quote from different insurers.
- Compare factors like coverage details and premiums to choose a policy that best suits your needs and interests.
- Fill out an application; this can be done in person or online.
- Submit all required documents, such as photos or a statement of property value.
- Afterwards, pay the first premium in order to activate coverage.
These steps guarantee ease when purchasing agreed value coverage. It is essential that individuals submit proof of vehicle or property value. This is considered one of the eligibility criteria for getting this insurance.
