How Valued Marine Policy Works?

How Valued Marine Policy Works and What is it? So you can know it in this post.

What is Valued Marine Policy?

A valued marine policy is a type of marine insurance that figures out how much the insured property, like the hull or cargo of a ship, is worth before a claim is made. If something bad happens, a valued marine policy will pay a set amount, as long as there are no signs of fraud.

An unvalued, or open, marine policy is not the same as a valued marine policy. After a loss, that kind of coverage would require showing invoices, estimates, and other proof to show how much the property was worth.

How It Works?

How Valued Marine Policy Works? Well, people or businesses can get financial protection against a certain type of loss through insurance in exchange for a fee called a premium. You can pay a fee to insure almost anything, even high-value things like ships and cargo.

All policies for marine insurance are either valued or not valued. For the first one, the amount of money is set and written in the policy document, so there are no questions about how much the reimbursements will be worth if the ships, cargo, and terminals covered by the policy are damaged or destroyed in whole or in part.

It’s easier to agree on the value of an insured item when you have one of these plans. When there are the words “valued at” or “so valued” in a marine policy, there is usually no need to reassess or revalue the item in case of an insured event or loss.

A valued marine policy always pays the same amount, no matter how bad the damage is. As an example, if you lose cargo and your policy pays $1,000 per box, it doesn’t matter if the cargo is worth $500 or $2,000 per box.