Property Valuation
A Connecticut homeowner wants to know the value of their property for insurance purposes. The appraiser should provide:
AMarket value—the most probable selling price
BInsurable value (replacement cost value)—the cost to rebuild the improvements to their pre-loss condition✓ Correct
CAssessed value (70% of market value)
DLiquidation value
Explanation
For insurance purposes, the relevant standard of value is insurable value—typically replacement cost, which is the cost to rebuild the improvements to their pre-loss condition. This differs from market value (which includes land, supply/demand, and other factors) since insurance does not cover land.
Related Connecticut Property Valuation Questions
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