Property Valuation
In Michigan, 'insurable value' differs from market value because it:
AIs always higher than market value
BRepresents the cost to rebuild or replace the structure (excluding land) for insurance coverage purposes✓ Correct
CIs determined by the local tax assessor
DIs used only for commercial properties
Explanation
Insurable value is the replacement cost of the structure (the improvements, not the land) for purposes of setting an adequate homeowners insurance coverage amount. It may differ significantly from market value, especially on land-value-heavy properties.
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