Definition: The value of the portion of a property covered by a specified insurance policy, determined under the policy's valuation terms.
Example
A policy's replacement-cost coverage concerns covered improvements rather than the market value of the land and building together.
Keep the distinction clear
Insurable value is not automatically market value. Covered property, exclusions, depreciation treatment, deductibles, and policy limits must be distinguished.
Related terms
Hazard Insurance · Replacement Cost · Market Value
Keep studying
References: California DRE: appraisal and valuation
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