Title: What does Insurable Value mean? | Colorado Appraisal Consultants
Headings: What does Insurable Value Mean?
What does Insurable Value Mean?
Short Answer
Definition
What it Means
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Content: What does Insurable Value mean? | Colorado Appraisal Consultants
What does Insurable Value Mean? Short Answer
Replacement cost new of the building improvements. Definition
Insurable Value is generally defined as: “The cost of total replacement of destructible improvements to a property; may be based on replacement cost rather than market value.” What it Means
Insurable Value is typically the replacement cost new of the building improvements only. In some cases, site improvements may be included. Most insurance companies only cover the building, however. Insurable value does not take into account land value, due to the fact that land is generally considered indestructible within the realm of real estate appraisal, nor is it insured.