Unvalued Policy Law and Legal Definition
Unvalued policy means an insurance policy that does not specify the value of the subject matter insured, but, depending upon the limit of the sum insured, requires the ascertainment of the insurable value. An unvalued policy requires a proof of the property’s worth upon loss. It is also called as open policy.
In Billmayer v. Farmers Union Property & Casualty Co., 146 Mont. 38 (Mont. 1965), the court held that “An open or unvalued policy is one in which the value of the subject matter is not fixed by the policy, one in which the amount of liability is left open to be determined according to the actual loss, either by agreement of the parties, or on proof in compliance with its terms or with the rules of evidence.”