Agreed amount clause,
Definition of Agreed amount clause:
This arrangement is typically available for commercial and other properties.
A clause that stipulates that the amount of insurance will automatically meet the coinsurance clause.
The agreed amount clause is a property insurance provision through which the insurer agrees to waive the coinsurance requirement. Insurers will require a statement of property values–signed by the policyholder–as a condition for activating or including an agreed value provision in a policy.
How to use Agreed amount clause in a sentence?
- Calculation of actual cash value is calculated by subtracting depreciation costs from replacement costs, with depreciation determined by establishing an expected lifetime and determining the remaining percentage of life.
- The value listed on the statement will become the basis from which policy coverage is determined.
- The agreed amount clause is a property insurance provision through which the insurer agrees to waive the coinsurance requirement.
- The agreed amount clause requires a signed statement of values or actual cash value; this statement details the value of the insured property.
Meaning of Agreed amount clause & Agreed amount clause Definition