AGREED VALUE INSURANCE
Agreed valuations are generally performed when an insurer or insured requires an independent valuation of an asset where a client has specified that such asset has more value than ascertained by reference to a price guide for whatever reason, modification, rarity, added equipment or modification for a specific purpose etc. The valuation must be undertaken by a certified valuer, a retailer or person portraying to be an expert but who is not a certified valuer’s submission will not be accepted, these people can only perform appraisals.
Agreed value
Agreed value is insuring your asset/s for the value you want to be paid in the case it is written off or stolen and unrecovered. This is a reasonable, fixed sum that you have agreed with your insurance provider.
Pros
Agreed value gives you greater control over your potential payout if the worst was to eventuate. By agreeing a value with your insurer, you can have the peace of mind of knowing you would be covered for an exact, predetermined amount.
Cons
When valuing your asset/s at an agreed value with your insurer there are a couple of cons to be aware of. Firstly, premiums tend to be more expensive because, in the event your asset is totaled, you’ll probably be paid out a greater amount than if you had chosen market value policies.
Buyer Beware
If you opt for agreed value asset, when it comes to renewal time check your policy carefully as some insurers will automatically revert your policy to market value, this is easily fixed by contacting your insurance provider and communicating your desire to have your asset continually insured at the agreed value or ask for an annual increase.
The valuation must be done by an industry expert in conjunction with a certified valuer unless the valuer can demonstrate expertise regarding the particular asset. That means you just can’t go to a retailer or manufacturer and get a report, unless that person is a certified valuer, they can only produce appraisals which aren’t good enough.
WE CAN HELP YOU WITH
Family Law Matters
When getting assets valued for family law matters, the documents produced by the valuer must be in the format required by the Federal Circuit and Family Law Court of Australia. The inspection must be conducted by a person who can demonstrate that he/she is qualified to act as an expert witness in court. There are many experts in various fields, most aren’t certified valuers. Because a valuer cannot be an expert in every case he may contract the services of an experts in various fields and work in collaboration with them. The valuer would then compile, edit and produce the finished report. In this way, a valuation report can include all the assets in one document saving time and money.
Probate
Probate matters are invariably sad times for estate beneficiaries. Many times, a valuation will be required to ascertain the worth of the deceased’s assets. He may have died intestate, there may be a dispute on the value of an asset, or a value may need to be placed on an asset offered for sale by the estate. These valuations must be in the correct format and be admissible as evidence in court if needed.
Recommendation as to an Agreed Valuation For Insurance Purposes
Agreed valuations are generally performed when an insurer or insured requires an independent valuation of an asset where a client has specified that such asset has more value than ascertained by reference to a price guide for whatever reason, modification, rarity, added equipment or modification for a specific purpose etc.