Agreed Value Policy

An agreed value policy pays a predetermined amount in case of total loss, regardless of current market value at the time of the loss. The standard for business aviation hull insurance.

In private aviation, Agreed Value Policy isn't academic — it translates to real operational or financial implications for your flight. Understanding it helps you participate in the planning process rather than delegating every decision to your broker.

Charter pricing reflects operational complexity, and Agreed Value Policy is one factor that contributes to that complexity. Depending on how Agreed Value Policy applies to your specific itinerary, it could influence the quoted rate, required crew configuration, or aircraft selection.

The core concept behind Agreed Value Policy is recognized internationally, but implementation varies. The FAA, EASA, and national aviation authorities each apply their own regulations, which means Agreed Value Policy may carry different specific requirements depending on where you're operating.

The Jet Finder's aviation glossary covers 200+ terms. For specific questions about how Agreed Value Policy affects your charter or acquisition, contact our team directly.

You don't need to be an expert in Agreed Value Policy to book a charter. But clients who understand aviation terminology tend to get better service, because they can communicate their requirements precisely and evaluate proposals with confidence.

Agreed Value Policy falls under the regulatory authority of the FAA (US), EASA (Europe), and equivalent national authorities worldwide. ICAO coordinates international standards. Your charter operator is responsible for compliance with all applicable regulations related to Agreed Value Policy.

Yes. Our aviation advisors can explain how Agreed Value Policy applies to your specific situation, whether you're chartering, buying, or selling an aircraft.