Insurance to Value

This refers to insuring a (typically) physical object to it's "true value". Depending on the insurance policy, this may refer to ACV, Market Value, Replacement Cost, Guaranteed Replacement Cost, or an Appraised Value. Underinsuring an asset is a way that people may try to reduce their insurance premiums, and overinsuring an asset (like an art piece) may lead to an insured being compensated for more than an asset is 'actually worth'. Some policies may have a clause that requires the asset be insured to its value, under whichever particular valuing metric that policy is using, and there may be penalties to the insured for under- or over-insuring the value of the asset.