The term ‘insured value’ refers to the value of the insured interest (Section 51 of the Insurance Contract Act – → Insurance Contracts Act). If the item in question is insured, its value is deemed to be the insured value, unless the circumstances indicate otherwise (Section 52 of the Insurance Contract Act (VVG)). The value of an item can be defined as: market value, current market value and replacement value. The insured value is, like the → Sum insured a limit on the → Compensation payment. Due to the prevailing prohibition on unjust enrichment, an insurance company may not pay out more than the insured loss, up to a maximum of the insured value.

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.