Business Property Insurance Valuation – All You Need to Know

In case you are like many small-scale and medium-sized businesses, your company may have changed significantly since the time you first bought your business property insurance policy. It could be that you have added more space to the office or perhaps you have shifted to another business location. In either of these cases, it is a good idea to get your property reviewed, so that your insurance is dependent on an accurate valuation. To evaluate your property, you can take hire the expertise of Insurance Valuation service provider, or you can undergo Insurance Valuation Training to simply facilitate the process in house. Given below are some basics and considerations that you can consider evaluating your property in a proper manner. 

Property can be defined anything that has value and primarily encompasses Real property, which is in the form of land and the permanent things on it, like buildings, outdoor fixtures, permanent machinery, and equipment. Apart from that, the property is also in the form of Business personal property, which is all other property that are not considered as real property and is stationary in nature, such as computers, telephones and office furniture. 

Most business properties insurance agencies mostly use two different methods for determining the value of the property - 

Replacement Cost:  This is the amount that is required to replace the damaged property entirely, using new materials as well as furnishings.

Actual Cash Value: It is generally overall replacement cost of the insured property and consists of deduction for depreciation. 

Determining how much your property is worth

Determining the business property value for your business owners policy is not troublesome, however it requires little time as well as effort and Insurance Valuation Training. If you have kept proper records, such as all the receipts as well as expenses, you would be able to evaluate the replacement cost of your office equipment, furniture, computers as well as other technological devices. Simply consider the stock and estimate the average value at any particular time. Items like antiques or artwork or other hard-to-replace items, make sure to appraise them and include their overall cost in your valuation. 

Other Considerations

One approach to deciding the value of your property is to hire a local contractor demand an estimate for replacing the building or undertake Insurance Valuation Training. Another route is to contact a nationally recognized agent who can give a best in class tool to estimate the real value of the property. Contingent upon your business owner’s policy and insurance agency, you may have a co-insurance clause of penalty. 

If this is the condition then a penalty on the off chance that you under-report your insurance valuation or opt for insurance for under 100% of the total replacement value is to be paid. Therefore, it becomes necessary that you audit your coverage on completion of the policy and roll out necessary changes to guarantee that you have satisfactory and suitable levels of the coverage.