Question

heidi owns an antique table that has a current market value of $12,000 she has the tale insured for $12,000 under a valued policy the table is completely destroyed when a severe hurricane hits the region and delivers heavy damages to heidi's home at the time of loss the table had an estimated market value of $14,000 how much will heidi collect for the loss?

Answer 1

heidi will collect $12,000 for the loss as she had a valued policy.

A valued policy is type of property insurance policy in which the value of property being insured is determined or fixed at the time of taking the policy. so, actual market value of the property at the time of loss in irrelevant as value of that property was already determined at the time of buying the policy.

So, actual market value of property of $14,000 at the time of loss in irrelevant.