valued policy
C1Technical / Professional / Formal
Definition
Meaning
An insurance policy that specifies a predetermined, agreed value for the insured item at the start of the policy, which is the amount paid in the event of a total loss, regardless of the item's actual market value at the time of loss.
A specific type of insurance contract used for items where market value is difficult to determine, fluctuates, or where replacement cost is a primary concern. It prevents disputes over valuation after a loss.
Linguistics
Semantic Notes
It is a compound noun functioning as a single lexical unit. The term is strongly associated with marine insurance, fine art, antiques, and specialized commercial equipment. 'Valued' here is a past participle adjective meaning 'having an agreed value'.
Dialectal Variation
British vs American Usage
Differences
Terminology and concept are identical in both varieties. Spelling conventions follow standard BrE/AmE rules for other words in a sentence (e.g., honour/honor).
Connotations
Identical technical and legal connotations in insurance contexts.
Frequency
Equally low-frequency in general language but standard within the insurance industry in both regions.
Vocabulary
Collocations
Grammar
Valency Patterns
The [ITEM] is insured under a valued policy.We secured a valued policy for the [ITEM].The [POLICYHOLDER] holds a valued policy.Vocabulary
Synonyms
Neutral
Weak
Vocabulary
Antonyms
Usage
Context Usage
Business
Standard term in insurance and risk management for high-value or unique assets.
Academic
Used in law, finance, and business studies papers discussing insurance principles.
Everyday
Virtually never used in everyday conversation outside of specific insurance discussions.
Technical
The primary context. A precise legal/insurance term defining a settlement method.
Examples
By Part of Speech
verb
British English
- The antique vase was valued and then insured under a special policy.
- They valued the collection professionally before taking out cover.
American English
- The jewelry was appraised and valued for the insurance policy.
- We need to value the equipment to get proper coverage.
adjective
British English
- The valued policy document was kept in the safe.
- They opted for a valued policy arrangement.
American English
- The valued policy clause was clearly stated.
- He reviewed the valued policy terms carefully.
Examples
By CEFR Level
- For her expensive ring, she has a valued policy.
- The museum's paintings are covered by a valued policy, so their worth is agreed in advance.
- Unlike standard insurance, a valued policy pays the agreed sum even if the market price falls.
- The shipowner insisted on a marine valued policy to avoid protracted litigation over the hull's value in the event of a constructive total loss.
- Under a valued policy, the insurer forgoes the right to adjust the payout based on the asset's depreciated actual cash value at the time of the claim.
Learning
Memory Aids
Mnemonic
Think of a VAL-UED policy: you and the insurer have already agreed on the item's VALUE before anything happens, so it's 'pre-valued'.
Conceptual Metaphor
INSURANCE IS A PRE-AGREED CONTRACT. The policy is a crystal ball that foresees and fixes the future payout.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating 'valued' as 'ценный' (valuable). It means 'оцененный' or 'с оговоренной стоимостью'.
- Do not confuse with 'ценная полис' (valuable policy). The core is the pre-agreed valuation, not the policy's worth.
- The phrase is a fixed term; translating word-for-word ('оцененная политика') would be nonsensical.
Common Mistakes
- Using 'valuable policy' to mean 'valued policy'.
- Assuming it applies to all types of insurance (it's specific to certain asset classes).
- Confusing it with a policy that increases in value (e.g., 'with-profits' policy).
Practice
Quiz
What is the key feature of a valued policy?
FAQ
Frequently Asked Questions
No. 'Valued' refers to a pre-agreed sum insured. 'Valuable' simply means the policy or the covered item is worth a lot of money.
It's typical for unique or hard-to-value items like antiques, fine art, jewellery, collectibles, and in marine insurance for ships and cargo.
Certainty. Both parties know the exact payout from the start, which speeds up claims and avoids disagreements over the item's current market value after a total loss.
An 'indemnity' or 'unvalued' policy. Under such a policy, the value of the loss is determined after the event, based on the item's actual cash value at the time of loss.