Definition of insurance replacement value
The cost of replacement of all improvements to a property which could conceivably be destroyed.
Replacement cost of a building for which standard insurance policies provide indemnity cover. Insurable value is less than the property’s appraised market value, because it excludes the value of land on which the building stands. The formula for computing the insurable value is usually stated in the valuation clause of a policy document.
Property Insurance appraisal and inspection
Construction costs show dramatic changes, both positive and negative, during the past few years, making it increasingly difficult to determine accurate property insurance values. AppraisalPro provides full-scope building insurance valuations, which include an inspection, capture of underwriting COPE data and estimation of insurable value by major construction components.
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