The Lords Insurance Blog

Making Insurance

Term of the Day

From our insurance terms section, this is the definition:

Valuation – A calculation of the policy reserve in life insurance. Also, a mathematical analysis of the financial condition of a pension plan.”

In depth explanation from ezarticle :

Insurance Valuation can guarantee the property owner has adequate insurance and is not paying for excessive coverage. A property loss can be a devastating experience even when fully insured. Incurring a loss when inadequately insured can cause financial disaster. Casualty insurance costs rose sharply after hurricanes Katrina and Rita, particularly in the Gulf Coast area. Property owners are more acutely sensitive to the cost of insurance as a result of rate increases which occurred after hurricanes Katrina and Rita. Those who suffered a loss are also more aware of the level of coverage.

Insurance Valuation provide evidence regarding replacement cost. Insurance Valuation confirm casualty insurance coverage is adequate to rebuild the property in event of a casualty. supplies you the values to allow you to set your insurable values at the proper and appropriate levels. Since construction costs have increased sharply in recent years, replacement costs have changed materially in the last few years.

 

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Written by lordsinsurancelog

December 20, 2010 at 11:26 pm

Posted in Daily Quip