Property Basics Flashcards
Market value
The price the owner can receive “on the market”
Valuation techniques
Replacement cost Actual cash value Market value Stated or agreed valued policy Special limits
Valued policy
Hard to appraise because of its rarity (unique, artistic merit)
Specific property
One type of policy in one location
Blanket policy
Two or more different types of property
Can be at the same location or at different address
Primary insurance
Insurer pays first up to policy limit regardless of other insurance
Excess insurance
Insurer Pays after primary insurance has been exhausted
Known as an “umbrella”
Contributing
Contributes to a claim with another policy or policies simultaneously
Concurrent policy
Provide identical perils on the same risk
Non concurrent
Policy that doesn’t provide identical perils
Reporting forms
Insured pays an initial premium based on ACV of building materials as the project progresses
Market value
Price an owner can receive on the “open market”
Replacement cost
Amount of money it would cost to replace with a like kind and quality at the time of loss
Actual cash Value
Replacement cost minus depreciation
