Definition Of Valuation Of Potential Property Loss In Insurance

Definition of "Valuation of potential property loss"

Donald A. Miller, Real Estate Agent Home Buyers Marketing II, Inc.

Risk management technique that evaluates property exposures preparatory to managing the risk. Although risk managers consider the original cost, depreciation, market value, and tax-appraised value of property, replacement cost is the most helpful in determining the value of the property, giving the truest indication of the degree of the exposure to be insured or otherwise financed.