Agreed Value
An agreed value is a dollar amount accepted by you and the insurer for the policy period and usually shown on the policy schedule or certificate. It can provide more certainty about the starting value used for a covered total loss, although the final payment may still be affected by the policy terms, excess, unpaid premium or other deductions.
Market Value
Market value is generally determined at or around the time of loss according to the insurer's policy definition. Age, make, model, condition and the market for comparable caravans may be considered. The result may differ from the purchase price, replacement cost, finance balance or the amount you expected to receive in a private sale.
Questions Worth Asking
| Question | Why it matters |
|---|---|
| Which value basis is offered? | Available value options can vary by provider and caravan. |
| What amount appears on the schedule? | This shows how the caravan is insured and any stated insured amount or limit. |
| Are accessories included? | Some may need to be listed or valued separately. |
| What deductions can apply? | Excesses and other policy terms can affect the settlement. |
| Is new replacement available? | Eligibility can depend on age, ownership and availability. |
Check the Value at Renewal
An agreed value may change when a policy renews. Market conditions and the caravan's condition can also change. Read the new schedule rather than assuming last year's value continues.