Unvalued Marine Policy
What Does Unvalued Marine Policy Mean?
An unvalued marine policy is an insurance policy that does not specify the value of the marine asset covered, such as a ship’s hull or cargo. Unlike with a valued marine policy, the insurer only assesses property value and damages after the policyholder files a claim, rather than determining it beforehand.
Insuranceopedia Explains Unvalued Marine Policy
An example of an unvalued marine policy is when a shipping company insures the cargo on one of its vessels without specifying its exact value upfront. If the cargo is lost at sea, the exact loss is determined when a claim is filed. Upon approval, the insurance company reimburses the shipping company for the calculated loss. Given that some container ships carry cargo worth millions of dollars, the reimbursement amount could be substantial.
