Direct answer
Actual cash value accounts for depreciation and current market value at the time of loss, whereas agreed value locks in a specific payout amount established by a recent appraisal before a loss occurs. For volatile markets like fine art, agreed value is generally preferred to prevent disputes over the item’s worth.
Insurance industry standards regarding property valuation and claims adjustment practices. For additional information about property valuation standards and consumer protection, see the National Association of Insurance Commissioners.
What this means for you
Actual cash value accounts for depreciation and current market value at the time of loss, whereas agreed value locks in a specific payout amount established by a recent appraisal before a loss occurs. For volatile markets like fine art, agreed value is generally preferred to prevent disputes over the item’s worth.
FARMER STOCKMAN
Protecting Your Future with Confidence
No pressure. No jargon. Just honest answers from advisors who genuinely care about your family’s protection.
This page is informational and not a coverage guarantee or quote.
