Insurable replacement value

Cost to rebuild

What the estimate measures

Improvements only

Land is left out of the figure

Owners, lenders and insurers

Who orders it

An insurable replacement value estimates the cost to rebuild a property's improvements. It is used to set insurance coverage, and it is a different number from market value.

• An estimate of the cost to replace the improvements
• An independent figure, prepared by a valuation firm
• A number you can give your agent or carrier when coverage is set or renewed

Order one when

• You are setting or renewing coverage on a building
• A lender asks for a current replacement cost
• Construction costs have moved since coverage was last set

1

Tell us about the property

Address, the product you need and the date you need it by. The form takes about a minute.

2

Get a fee and turn time

We reply by email with the fee, the delivery date and the product we recommend for your purpose.

3

Approve and we start

Sign the engagement online, or send your own engagement letter if you are a lender. We take it from there.

How does an insurable replacement value work?

It estimates what it would cost to rebuild, so the coverage amount matches the building.

Is replacement value the same as market value?

No. Market value is what the property would likely sell for, land included. Replacement value is the cost to rebuild the improvements.

How do insurers use valuations?

To set coverage amounts and premiums and to assess risk.