Agreed value insurance in North Carolina: what it is and when you need it

What is agreed value insurance?

Agreed value means you and the insurer establish the value of the insured item upfront, before a loss. If the item is a total loss, you receive exactly that agreed amount, no depreciation, no dispute, no replacement cost calculation. It is the most certain form of coverage for items with established value.

How does agreed value differ from replacement cost coverage?

Replacement cost pays what it costs to replace the item with a new equivalent at today's prices. Agreed value pays the pre-established agreed amount regardless of replacement cost or depreciation. For items that appreciate (classic cars, art, collector items), agreed value is usually superior.

What types of NC insurance use agreed value?

Classic and collector car insurance (Hagerty, Grundy), boat insurance for named vessels, fine art and jewelry floaters, and some specialty home policies for historic or custom homes. Standard homeowner's policies use replacement cost, not agreed value.

How is the agreed value established for my NC classic car or artwork?

Through an appraisal. A certified appraisal establishes the current market value, which the insurer then agrees to insure at. For classic cars, the appraisal documents the vehicle's condition, modifications, and market comparables.