01 / The meaning
What it means.
It may concern buildings, contents, stock or another insured interest. Depending on the wording, the declared value can help calculate premium, establish a starting valuation or interact with an uplift provision. It is not automatically an agreed claim settlement amount. The separate sum insured and basis of settlement explain the amount and method potentially available following damage.
Use figures suited to the insurance purpose. A purchase price, accounting book value or market value may omit demolition, professional fees, freight or installation that a replacement calculation needs. Stock levels can change throughout a year, while a building project may increase values before renewal. Keep the calculation and its assumptions so a later review can explain exactly what was declared.
02 / Put it in context
A practical example.
Hypothetical example: a wholesaler declares warehouse contents using last year’s asset register. New racking and imported machinery have since arrived, so the business seeks an updated valuation before assuming those values are adequate.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Confirm the required valuation date and settlement basis.
- Include installation and other costs required by the wording.
- Compare declared values with seasonal stock and recent purchases.
04 / Start a useful conversation
A question for your broker.
What must this declared value include, and how does it interact with my sum insured?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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