Industry jargon can easily confuse us about what we are actually going to receive when we make a claim against a policy. Make sure you are paying for the right kind of cover and that it is detailed in your policy schedule:

Insured amount

This is the value that is shown in your policy schedule, but not necessarily the amount that you would be paid in the event of a claim/loss. Usually this is just the maximum that an insurer will pay

New replacement cost

This is the cost to replace the item with a new one.

Agreed value

This is the value that has been agreed between the client and the insurer. Insurers are reluctant to do this and will only agree under exceptional circumstances.

Trade/book value

This is the value that a dealer would buy your second-hand vehicle for to resell it at a profit.

Retail value

This is the value at which a dealer would sell a second-hand vehicle.

Market value

This is the average between the trade and retail values.