How to Ensure Your Company's Building to Value

Whether you’re buying a new business insurance policy or want to update it, knowing your property building’s value is important. Sometimes, it’s necessary to add value to your policy to better insure your space. At other times, knowing the worth of your location’s fixtures, equipment and amenities can help you handle a claim. 

In any event, knowing how to financially evaluate your property makes all the difference. To determine your property’s accurate valuation during a review, take the following steps: 

Find Anything of Value 

When it comes to business insurance, a location’s property is anything of value. This includes real property, which is the physical land—as well as the permanent things included with it. This includes: 

When adding your property values together, you can take two approaches. The first is valuation by replacement cost—which equals the amount of money needed to replace any damaged or lost property, equipment, buildings or furnishings. 

The other valuation method is Actual Cash Value, or ACV. This valuation method measures the overall replacement cost of property minus the property’s accumulated depreciation. This depreciation is the location’s age and wear-and-tear. 

Once you’ve settled on a valuation method, you’re ready to put the values together. Talk with your business insurance agent, as they’ll use state-of-the-art estimation tools to get the most value out of your property.