Agreed Value

Agreed Value is a policy provision where the insurer and homeowner agree on a fixed payout amount for a specific item or the entire dwelling at the start of the policy. Unlike “Replacement Cost,” which can fluctuate with inflation, an Agreed Value policy guarantees a specific check amount if a total loss occurs. This is highly common for luxury assets, fine art, and historic homes where calculating a fluctuating replacement cost would be too complex or risky.