What does Market Value Clause mean? Read on to discover the definition & meaning of the term Market Value Clause - to help you better understand the language used in insurance policies.
Market Value Clause
A property insurance endorsement or provision establishing market value (rather than actual cash value (ACV) or replacement cost (RC) value) as the valuation basis for covered property. Usually used in connection with agricultural products and other commodities whose value fluctuates in accordance with a commodities exchange. Also occasionally used as the valuation basis for a building.
We hope the you have a better understanding of the meaning of Market Value Clause.