Insurable value is the estimated or actual value of the insurance object at its location at the time of the conclusion of the insurance contract. It is indicated in the insurance policy or in the contract. As a rule, the sum insured is determined by the insured on the basis of payment documents submitted by the insurer. Information guides or reports of independent appraisers can be used to determine the insured value.
Instructions
Step 1
Insurable value is the monetary value of the object of insurance used when insuring property or business risk. For property, the insured value is its actual value at the time of the conclusion of the insurance contract, for business risk - losses from entrepreneurial activities that the policyholder could have incurred in the event of an insured event.
Step 2
Insurable value expresses the price of the object of insurance, is of great importance in the insurance of property and business risk and is applied in different situations. It is a guideline when the parties decide on the amount of the insured amount. If an insured event occurs, then in relation to the insured value, the amount of damage will be determined, and, consequently, the amount of insurance compensation.
Step 3
The insured value in different countries is determined in different ways and depends on the current legislation and established practice. For example, when insuring goods in English practice, the insurance value is taken as the price at which the insured property cost the buyer at the time of loading, plus the costs of its loading and insurance. In the United States, the insured value is determined by the market price of the item in effect at the time of the start of the flight. In accordance with French law, the insured value of the goods is calculated as its selling price at the place and at the time of loading, taking into account the costs of transportation to the destination and a certain amount of profit.
Step 4
When insuring real estate, the insured value of the insurance object (apartment, summer cottage, residential building, garage, etc.) is taken to be equal to the market value of the premises similar to the insured and compared with it. For example, when determining the insurance value of an apartment, the market price of apartments located in the same area, of the same area with the same number of rooms, on the same floor, is calculated.
