When purchasing insurance for valuable assets, understanding your coverage understanding your coverage options is essential. One of the key concepts in insurance is Agreed Value, which offers a level of certainty that can be crucial for protecting your property. Whether you're looking to ensure a vehicle , home , or business assets , Agreed Value insurance might be the right choice for you.

If you're based in Tempe , Phoenix , Scottsdale , Tucson , Gilbert , or Chandler , Riseson Insurance is here to help you understand how Agreed Value Insurance works and why it could be a vital addition to your coverage.

Agreed Value is an insurance policy feature where the insurer and the policyholder agree on a specific amount of coverage at the time the policy is created. This agreed-upon value is the amount you will receive in the event of a total loss, such as theft , fire , or accident , regardless of depreciation.

Unlike Actual Cash Value (ACV) policies, which factor in depreciation over time, Agreed Value policies lock in a fixed amount for the insured asset. This is especially important for high-value items that may appreciate over time, like classic cars, fine art , or commercial property.

Peace of Mind : When you choose Agreed Value insurance, you have certainty. You know exactly how much you will receive in the event of a total loss, which eliminates the guesswork and the stress of dealing with depreciation. No Depreciation: For assets that might depreciate rapidly, such as vehicles or equipment, Agreed Value policies ensure you're compensated for the full value without taking depreciation into account. This is important for items like classic cars or high-end equipment found in many businesses in Scottsdale and Tempe, where their value might not follow traditional depreciation schedules. Customizable for Your Needs: Whether you're a small business owner in Phoenix, Tucson, or Chandler, or an individual homeowner , Agreed Value policies can be tailored to your needs. For example, if you’re insuring a commercial building or expensive equipment, you and your insurance agent can agree on a fixed amount for the asset’s replacement cost. Protection Against Underinsurance: With Agreed Value insurance, you don’t have to worry about being underinsured. This is particularly useful if you’re operating in a market where asset values fluctuate, like in Gilbert or Chandler, where real estate and business values can vary significantly.

Here’s a simple breakdown of how Agreed Value insurance works:

Asset Valuation: The insurer and the policyholder agree on the value of the asset at the beginning of the policy period. Premium Calculation: Your premium will be based on the agreed-upon value of the asset. Higher-value assets typically require higher premiums. Claim Settlement: In the event of a total loss, the agreed value is paid out—no depreciation is factored in.

For instance, if you own a high-end piece of equipment in Phoenix or Tucson, and its market value fluctuates, an Agreed Value policy ensures that if it’s lost or damaged beyond repair, you will receive the amount you and the insurer originally agreed upon, rather than being compensated based on its depreciated value.

At Riseson Insurance, we understand that different assets require different levels of protection. Whether you own valuable equipment for your business in Scottsdale or have a cherished collection of classic cars in Chandler, we can help you tailor an Agreed Value policy that fits your specific needs.

Our experienced agents are here to provide you with:

Personalized Advice: We work with you to assess the true value of your assets and help you select the right level of coverage. Clear Explanation: Agreed Value insurance can sometimes be complex, but we make it simple for you to understand how it works and why it's right for your situation. Competitive Premiums: We shop around to find the best rates for Agreed Value insurance, so you’re getting the most value for your investment.

It’s important to differentiate between Agreed Value and Actual Cash Value (ACV) insurance. While ACV takes depreciation into account, Agreed Value does not. For example, if your car is damaged in an accident and you have an ACV policy, the payout will reflect the current value of the car after depreciation. On the other hand, with Agreed Value, you’ll receive the agreed-upon value from the start, regardless of the car’s depreciation over time.

For those with valuable assets—whether in Tucson, Tempe, Phoenix, Scottsdale, Gilbert, or Chandler—Agreed Value Insurance offers peace of mind and ensures that you’re fully compensated for a total loss without worrying about depreciation.

At Riseson Insurance, we specialize in creating customized Agreed Value policies that protect your most prized possessions. Get in touch with us today at 602-460-5470 to discuss how we can help you secure the right insurance coverage for your needs.

What is Agreed Value Insurance?

Why is Agreed Value Insurance Important?

How Does Agreed Value Insurance Work?

How Can Riseson Insurance Help You with Agreed Value Coverage?

Agreed Value vs. Actual Cash Value

Conclusion

1. Peace of Mind : When you choose Agreed Value insurance, you have certainty. You know exactly how much you will receive in the event of a total loss, which eliminates the guesswork and the stress of dealing with depreciation.
2. No Depreciation: For assets that might depreciate rapidly, such as vehicles or equipment, Agreed Value policies ensure you're compensated for the full value without taking depreciation into account. This is important for items like classic cars or high-end equipment found in many businesses in Scottsdale and Tempe, where their value might not follow traditional depreciation schedules.
3. Customizable for Your Needs: Whether you're a small business owner in Phoenix, Tucson, or Chandler, or an individual homeowner , Agreed Value policies can be tailored to your needs. For example, if you’re insuring a commercial building or expensive equipment, you and your insurance agent can agree on a fixed amount for the asset’s replacement cost.
4. Protection Against Underinsurance: With Agreed Value insurance, you don’t have to worry about being underinsured. This is particularly useful if you’re operating in a market where asset values fluctuate, like in Gilbert or Chandler, where real estate and business values can vary significantly.

1. Asset Valuation: The insurer and the policyholder agree on the value of the asset at the beginning of the policy period.
2. Premium Calculation: Your premium will be based on the agreed-upon value of the asset. Higher-value assets typically require higher premiums.
3. Claim Settlement: In the event of a total loss, the agreed value is paid out—no depreciation is factored in.

• Personalized Advice: We work with you to assess the true value of your assets and help you select the right level of coverage.
• Clear Explanation: Agreed Value insurance can sometimes be complex, but we make it simple for you to understand how it works and why it's right for your situation.
• Competitive Premiums: We shop around to find the best rates for Agreed Value insurance, so you’re getting the most value for your investment.