What does Ad Valorem mean? Read on to discover the definition & meaning of the term Ad Valorem - to help you better understand the language used in insurance policies.
An ad valorem is a tax levied on the assessed value of an item. Its name is, appropriately, Latin for "according to value." Ad valorem taxes are usually applied to real estate and to personal property, including (in the latter case) duties on goods imported from abroad.
We hope the you have a better understanding of the meaning of Ad Valorem.