What type of policy assigns a set value to each insured item?

A valued policy is designed specifically to assign a predetermined amount of coverage to each insured item. This means that in the event of a loss, the insurer agrees to pay the exact amount stipulated in the policy for that item, without regard for its actual cash value or replacement cost at the time of the loss. This is particularly beneficial for items that may have a fixed or appraised value, as it provides clarity and certainty to both the insured and the insurer about what is covered and how much will be paid.

In contrast, an indexed policy typically involves adjustments based on inflation or other economic factors, rather than a fixed amount for each item. A comprehensive policy generally provides broad coverage that may cover multiple perils, but does not specifically assign a set value to items. A standard policy often follows traditional practices in insurance coverage without the specific predetermined values associated with each item, which can lead to variations in payouts based on depreciation or repair costs.