How much will insurers pay Georgina for her lost engagement ring valued at £7,200 under an agreed value policy?

In an agreed value policy, the insurer and the insured have pre-established the value of the insured item—in this case, Georgina's engagement ring valued at £7,200. This means that in the event of a loss, the insurer will compensate the insured for that pre-agreed amount without requiring any deduction for depreciation or other factors that could affect market value at the time of loss. Therefore, since the ring was valued at £7,200, the insurer will pay Georgina the full amount of the agreed value, which is £7,200. This concept ensures that the insured party receives a predetermined sum rather than a fluctuating market value, providing clarity and reassurance for both the insurer and the policyholder.