Insurable Value: What Your Policy May Be Lacking

What is a Property Really Worth According to an Insurance Policy?

For property owners and the professionals that support them, one question is worth considering before a loss occurs: Do you know your property’s Insurable Value?

Many assume that market value is the most important number when it comes to insurance. After all, that’s what your property is worth on paper, right?

But in the eyes of your insurance policy, it’s not that simple.

Most commercial property policies base coverage on Insurable Value, the amount it would cost to repair or rebuild the structure using today’s materials, labor, and building codes. It does not account for land value, location premiums, or market conditions.

This can create a disconnect at the time of your claim. If the insured value listed on the policy doesn’t reflect the actual cost of reconstruction, your settlement may fall short, sometimes significantly. Property owners often don’t realize the gap until they’re deep in the claims process, dealing with unexpected out-of-pocket costs, delays, or disputes over what qualifies as “covered.”

We work exclusively on behalf of policyholders to help navigate the complex and often frustrating claims process. Our role is to ensure your claim is fully documented and accurately valued according to the coverage you’ve purchased. We bring clarity to policy language, support fair negotiations, and help ensure the insurance company’s offer aligns with the true cost of restoring what was lost.

If you or your client has recently experienced a loss, we can step in as an advocate. We level the playing field, working to protect the property owner and ensure recovery is as complete and fair as the coverage allows.

Whether you own one commercial property, oversee a diverse portfolio, or advise those who do, understanding how insurance coverage is calculated can make a significant difference when it comes time to file a claim. ALPHA Adjusting understands what’s at stake. And when it matters most, we make sure our clients are not navigating it alone