What Is Insurance Valuation?
Valuation is the process of assessing the worth or market value of something. This article provides an overview of insurance valuation, what it's for and what to expect if you're in need of this type of valuation.
The purpose of the Insurance Valuation Report is primarily for insurance purposes and would assist in forming the basis of the ‘sum insured’ to cover the building in the event of total loss.
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Insurance valuation is the process of estimating the present worth of an insurance claim. This can be done for a variety of reasons, including to determine whether a claim is worth paying and when to settle a claim. The process of insurance valuation is complex, and there are many factors that must be considered in order to come up with an accurate value.
One of the most important factors in insurance valuation is understanding the risk involved in the claim. Different types of risks can impact the value of a claim differently, and it's important to understand what those risks are in order to get an accurate estimate. For example, a risk that could increase the value of a claim is if it's likely that the injury will cause long-term disability or death. On the other hand, a risk that may have less impact on the value of a claim may be if the injury only causes short-term disability.
Another factor that can impact the value of a claim is how much money is available to pay out on it. If there's not much money available to pay out on a claim, then the insurance company may be more willing to settle it for a lesser amount.