Valued Marine Policy is a type of insurance coverage that places a specific value on the insured property, such as the hull or cargo of a shipping vessel. A valued marine policy pays up to, or in its entirety, the specified value in the event of a total loss. It 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 the event of a loss. It differs from an unvalued marine policy where the value of the property would be determined following the event of a loss. In the absence of fraud, a valued marine policy will pay the specified value if a loss occurs. Marine insurance provides coverage against losses sustained by ships, cargo, and terminals. It forms the measure of indemnity at the time of loss.
For example, a policy may pay $1,000 per box of lost cargo, regardless of whether the value of the cargo is actually $500 or $2,000 per box.
