Agreed Amount Clause

A A A

DEFINITION

A property insurance provision in which the insurer agrees to waive the co-insurance requirement. To obtain an agreed amount clause, insurers require a statement of property values signed by the insured as a condition of activating or including an agreed value provision in a commercial property policy, otherwise known as an agreed amount clause.

INVESTOPEDIA EXPLAINS

The coinsurance clause requires the insured to have a certain percent of the property value insured, and often provides the insured a substantial reduction in rate, provided he or she maintains insurance equal to the amount agreed upon at the inception of the policy.



RELATED TERMS
  1. Indemnity

    Compensation for damages or loss. Indemnity in the legal sense may also refer ...
  2. Co-Insurance

    A co-sharing agreement between the insured and the insurer under a health insurance ...
  3. Casualty Insurance

    A broad category of coverage against loss of property, damage or other liabilities. ...
  4. Risk Management

    The process of identification, analysis and either acceptance or mitigation ...
  5. Treble Damages

    A law that permits a court to triple the amount of damages awarded in cases ...
  6. First Dollar Coverage

    An insurance policy feature that provides full coverage for the entire value ...
  7. Indemnity Insurance

    An insurance policy that aims to protect business owners and employees when ...
  8. Reinsurer

    A company that provides financial protection to insurance companies.
  9. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s ...
  10. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose deaths were ...
Related Articles
  1. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  2. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

  3. Long-Term Care Insurance: You Have Options
    Options & Futures

    Long-Term Care Insurance: You Have Options

  4. Top Tips For Cheaper, Better Car Insurance
    Options & Futures

    Top Tips For Cheaper, Better Car Insurance

  5. Life Insurance: Putting A Price On Peace ...
    Insurance

    Life Insurance: Putting A Price On Peace ...

  6. 6 Good Reasons To Get Renter's Insurance
    Insurance

    6 Good Reasons To Get Renter's Insurance

  7. How Cash Value Builds In A Life Insurance ...
    Insurance

    How Cash Value Builds In A Life Insurance ...

  8. 6 Ways To Capture The Cash Value In ...
    Insurance

    6 Ways To Capture The Cash Value In ...

  9. Passing Boomers Will Leave A Big Economic ...
    Investing Basics

    Passing Boomers Will Leave A Big Economic ...

  10. The 5 Largest U.S. Product Liability ...
    Stock Analysis

    The 5 Largest U.S. Product Liability ...

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center