Description

Insurance valuation is the process of estimating the cost of replacing an item in the event of loss, theft, or damage. It can also refer to the process of determining the value of a life insurance policy. Insurance valuation helps ensure that you receive fair compensation from your insurance provider. It considers various factors, such as: the item's original purchase price, the quality of materials used, and the craftsmanship involved in its creation. For life insurance, valuation involves evaluating factors such as: the death benefit, cash value, premiums, and future cash flows. Each insurance policy has a section titled “Valuation” that defines how property will be valued at the time of a claim. There are a variety of valuation options available, and the type of property insured and your needs will determine which is best for you.