What does Valuation Clause mean? Read on to discover the definition & meaning of the term Valuation Clause - to help you better understand the language used in insurance policies.
A valuation clause is a clause in an insurance contract that provides an exact dollar figure for the amount to be reimbursed in the event of a loss. This figure must be agreed to by both the insurer and the insured. The premiums for the policy are paid in exchange for the promise of reimbursement promise for the value in the valuation clause in the event of a loss.
We hope the you have a better understanding of the meaning of Valuation Clause.