What is a valued policy?

[PolicyWala]

Sometimes the insured may not be in a position to determine the exact value of the property to be insured. The reasons for this may be various. Under such circumstances both insured and the insurer agree for a basis of valuation which may be more or sometimes less than the actual value of the property. Such policies are called "valued policies".

[denson]

It is an insurance policy in which the value of the insured item is defined and agreed at the commencement of the policy. In the event of a total loss the agreed amount is paid by the insurer without the need for further proof of value.