Insurable
Value

The assignment concludes a value definition appropriate to the insurance purpose — often related to the cost to replace or repair the improvements, not market value. The applicable definition, the components included or excluded, and the intended use are confirmed up front and stated in the report. The deliverable is a written report documenting the scope, the definition applied, and the conclusion.

Owners and their insurance advisors use insurable value determinations to inform coverage decisions on commercial property. For example, an owner insuring a warehouse may want a supported insurable value to inform the coverage amount. Confirm specific coverage requirements with your insurance carrier or advisor; the appraisal supplies value information, not coverage advice.

The analysis considers the property's improvements, their characteristics and condition, the applicable value definition and intended use, and what components the definition includes or excludes. The cost approach is often relevant, but the methodology depends on the definition. The conclusion is specific to the defined insurance purpose and is not a market value or a coverage recommendation.

We begin by discussing the insurance purpose and the value definition to apply to confirm scope. After agreeing on scope, we inspect or review the property, research relevant cost information, analyze the data, and deliver a written report stating the definition and conclusion. Scope, fees, and timing depend on the property and the definition applied.