Market value

Market value is the price at which a product or service is traded in a market. In the event of loss or damage to a product, the current market value is calculated for potential payment if it is covered in your insurance terms. This is the purchase price minus the age deduction.

How is the market value calculated in insurance?

Either through a fixed table of age deduction in percentage based on year of purchase, or by looking at prices of what similar products are sold for on the second-hand market.

What is affection effect?

Affection effect is a subjective value where the value is based on personal and emotional grounds, not financial. Unlike the market value, which can be calculated independently of the valuer and its possible relationship to what is valued.