Insurable value means the actual actual value of the insured property. Various economic valuation methods are used to calculate the insurable value. It should be borne in mind that this value is important in determining the insured amount. In turn, the latter indicator should not be more than the insured value.
You can use information guides or reports of independent appraisers to determine the amount of the insured value. After all, this is the monetary value of the insurance object itself, which is used when insuring entrepreneurial risk or property. For the latter, the insured value will be considered its actual value at the time of the conclusion of the insurance contract, and for business risk it is the amount of losses that may arise from business, expressed in monetary terms.
Please note that the insured value can be determined in different countries in different ways, which will directly depend on the current legislation, as well as the established practice. For example, when insuring cargo in English practice, the price at which this insured property cost the buyer himself for the loading period plus the costs of loading it, as well as insurance, is taken in the form of the insured value. In America, insured value is defined as the market price of an item in effect when the purchase commences. According to French law, the insured value of a product is calculated as the sum of its sales price at the place and at the time of loading with the amount of transportation costs and a certain amount of profit.
In turn, when insuring real estate, to determine the insured value of the insurance object (for example, an apartment or a residential building), an amount is taken equal to the market value of the premises in question, which must be similar to the insured. That is, when determining the value of the insured value of an apartment, it is necessary to calculate the market price of apartments located in the same area, having the same area with the same number of rooms, on the same floor.