What Is Marine Insurance?

A valued marine Insurance is a type of marine insurance coverage that places a specific value on the insured property, such as the hull or cargo of a shipping vessel, prior to a claim being made. In the event of a loss, a valued marine policy will pay a specified, pre-determined amount—provided, of course, that there are no traces of fraud.

A valued marine policy differs from an unvalued, or open, marine policy. Under that type of coverage, the value of the property would need to be proven subsequent to a loss through the production of invoices, estimates, and other evidence.

KEY TAKEAWAYS

• A valued marine policy is a type of insurance coverage that places a specific value on marine property prior to a claim being made.
• In the event of a loss, a valued marine policy will pay a specified, pre-determined amount.
• That means if the insured item depreciates in value, it will not affect the amount which can be claimed in the event of a total loss—and vice versa.
• Valued marine policies differ from unvalued marine policies, which only assess property value and damages after the policyholder files a claim.