What does Residual Value Insurance mean? Read on to discover the definition & meaning of the term Residual Value Insurance - to help you better understand the language used in insurance policies.
Residual Value Insurance
Guarantees the owner of leased personal property (e.g., autos or equipment) a particular value at a specified future date, usually the termination of the lease. Covers the difference between the actual liquidated value of property returned to the insured lessor and the expected value of the property specified in the policy.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Residual Value Insurance. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: