Agreed Amount Endorsement

Agreed amount endorsement is when the insurance company and you, the insured, have set the value of an item. This value is set at the time it is added to the policy.

Examples of endorsements on your automobile policy that affect the value you get paid include the SEF 19 (only pay up to this much) and SEF 19A (guarantee to pay this much). Examples of terms you could see on your property policy include ACV (actual cash value), RC (replacement cost), GRC (guaranteed replacement cost) and LWD (limited waiver of depreciation).

If you have a claim and the item is a higher amount then what you insured it for then a penalty could be applied. Be sure to ask how the claim will be handled for items that are of concern to you. The exclusions and limitations of an insurance policy are very important.

When you look at your insurance policy you should see if there are any special stated value endorsements. If it is not listed and you think it should be then talk to your agent or broker. You need to take control of your insurance policy whether it be your home insurance covering a piece of jewelery or a business insurance policy for property.