What type of value requires the insured to insure named property for a specific amount as mandated by the insurer?

The correct answer is Agreed Value, which refers to a type of insurance policy in which the insurer and the insured agree on a specific value for the property at the time the policy is issued. This predetermined amount is what the insured will receive in the event of a total loss, regardless of the property's actual cash value or replacement cost at that time. This agreement provides certainty and peace of mind for the insured, ensuring they are adequately covered based on the valuation set forth in the policy.

In contrast, market value fluctuates based on current real estate conditions and may not reflect the value agreed upon in the policy. Actual cash value takes depreciation into account, meaning that the payout could be significantly less than the initial investment or insured amount. Replacement value focuses on the cost to replace the damaged item without factoring in depreciation, which can lead to different coverage and potential payout scenarios. Thus, the specificity and clarity of the agreed value approach make it the correct option in this case.