Overvaluation Law and Legal Definition

In finance, valuation is the process of estimating the potential market value of a financial asset or liability. Over valuation is an appraisal that is too high; too high a value or price assigned to something. It is the process of fixing the value of something at too high a level.

In insurance, it is the assignment of a fictitious or excessive value to an item so the owner may receive a higher amount of insurance proceeds if the insured item is lost or destroyed.