Insurable Value

What Does Insurable Value Mean?

Insurable value is the amount an insurer is willing to cover for a property. This term is commonly used in property insurance.

For example, if a house is appraised at $200,000, its insurable value would also be $200,000, meaning that the policyholder would be covered for losses up to that amount.

Insuranceopedia Explains Insurable Value

It is important to note that land value is often excluded from calculations of insurable value, as land typically does not incur losses and remains unchanged indefinitely. Therefore, many insurance policies do not cover land.

The insurable value of homes and other buildings can be influenced by various factors, including market fluctuations, neighborhood crime rates, and the size of the structure.