Insurance to value is a property insurance underwriting concept, which focuses on insuring your camp buildings and other real property at their full replacement value.
But some insurance to value problems are the result of inadequate attention to this issue by insurance agents and insurance companies.
Regardless of which resource you use to calculate the replacement value of your real property, it is vitally important to carry insurance to value. Which valuation method you choose -- replacement cost or actual cash value -- depends upon what you want from your insurance following a loss.
If insurance to value is neglected, your camp insurance underwriter might be unwilling to provide you with certain coverages or considerations such as agreed value endorsements or replacement cost coverage.
Look into insurance to value, and ordinance or law coverage before your next policy anniversary.
This is analogous to the way the insurance industry shortchanges itself every day by not getting appropriate insurance to value on insured properties.
Proper insurance to value has an obvious impact on the bottom line of an insurer when it's recognized that property rates are promulgated based on the full value of the property.
When we fail to get proper insurance to value, no one wins.
The issue of proper insurance to value is often overlooked for a variety of reasons, not least of which is that most policyholders do not suffer losses.